According to data from digital asset investment firm CoinShares, investments in digital asset funds fell for the second week in a row, with withdrawals of $206 million between 15 and 19. April.
Bitcoin (BTC) funds have led Capital outflows over the past week, with $192 million exiting the market ahead of the halving. Ether (ETH) investment products also saw Capital of $34 million, marking the sixth consecutive week of negative flows.
Investment in blockchain stocks is also tapering off, with the sector recording Capital for the 11th consecutive week, totaling $9 million.
According to CoinShares, the downtrend could be due to investor concerns about rising interest rates in the US, which could make less risky financial instruments more attractive than more volatile assets. works like electronic money.
The Federal Reserve predicted it would loosen monetary policy by mid-2024 if economic conditions were right, but recent inflation data has dashed those hopes. The annual consumer price index rose 3.5% in March, beating expectations for the third straight month and suggesting that lower interest rates may not materialize until 2025. Federal funds rate The state is currently between 5.25% and 5.50%.
The data shows that ETP/ETF investor interest continues to wane, possibly due to expectations that the Fed may keep interest rates at these high levels for longer than expected.
Volume of ETFs decreased slightly to $18 billion during the week. However, Capital from bitcoin funds should not be seen as an opportunity to Short the cryptocurrency. According to CoinShares, this trend indicates that although investors are staying away from volatility, they don't necessarily expect Bitcoin prices to crash anytime soon.
Bitcoin ETF inflows have slowed significantly since their peak in March. Meanwhile, BlackRock's iShares Bitcoin Trust (IBIT), the largest ETF in terms of Assets Under Management, remains Investor sentiment stabilized this month, attracting $1.4 billion in positive Capital as of April 19.
