$1 billion flows into crypto funds after Fed comments suggest rate pause
Digital asset investment products reversed exodus trends to reach $1 billion in September following shifting inflation data expectations and new Federal Reserve guidance from Governor Christopher Waller.
CoinShares head of research James Butterfill states Bitcoin is trading like gold, though Federal Reserve policy remains the ceiling for prices near $80,000. Market sensitivity emerged after Fed Chair Jerome Powell's predecessor Kevin Warsh spoke at Jackson Hole, noting modest inflation progress. Roughly $100 million left digital asset products immediately post-speech as September rate hike probability rose. Flows reversed within a week to hit $1 billion by September 4. Governor Christopher Waller indicated disinflation signs and suggested keeping steady rates if data improved. Butterfill wrote investors are not exiting the asset class; they are trading the rate path. As of Monday, Federal Funds futures implied a roughly 60% chance of a rate hike following next week's FOMC meeting according to CME Group.
