Crypto investment products see outflows for second consecutive week – CoinShares
According to the data of the digital asset investment company CoinShares, investments in digital asset funds decreased for the second consecutive week, during the period from April 15 to 19, it was able to withdraw $ 206 million.
Bitcoin (BTC) funds led the outflows last week, with $192 million exiting the market in the first half of the event. Ether (ETH) investment products also experienced $34 million in losses, marking the sixth consecutive week of negative inflows.
Investments in blockchain stocks also eased, with the sector recording an 11th consecutive week of outflows, totaling $9 million.
According to CoinShares, the cooling trend may be due to investor concerns about rising interest rates in the United States, which makes less risky financial instruments more attractive compared to volatile assets such as cryptocurrencies.
The Federal Reserve expects to ease monetary policy by mid-2024 if economic conditions agree, but recent inflation data has clouded those expectations. The annual consumer price index rose 3.5% in March, beating expectations for the third consecutive month and suggesting that lower rates may not materialize until 2025. The federal funds rate is currently between 5.25% and 5.50%.
“The data suggests that ETP/ETF investor appetite continues to wane, which could lead the Fed to keep interest rates at these high levels for longer than expected.”
Bitcoin exchange traded funds (ETFs) fell slightly to $18 billion during the week. The Bitcoin fund exit, however, was not seen as an opportunity to short the cryptocurrency. According to CoinShares, the trend suggests that while investors are moving away from volatility, they don't expect Bitcoin's price to fall anytime soon.
“These volumes represent a lower percentage of the total Bitcoin volumes (which continue to grow) at 28% compared to 55% a month ago,” the report said.
Inflows into Bitcoin ETFs have slowed sharply since peaking in March. Meanwhile, BlackRock's iShares Bitcoin Trust (IBIT), the largest ETF under asset management, has maintained a steady level of investor interest this month, generating $1.4 billion in positive inflows since April 19.
Magazine: 1 in 6 new Base meme coins are scams, 91% chance
