Cryptocurrency investment funds saw investors withdraw a total of $206 million over the past week, marking the second consecutive week of withdrawals. However, altcoins, including LINK, DOT, XRP , and ADA , have seen significant Capital .
According to CoinShares' latest Digital Asset Inflows report , crypto investment products focused on multiple digital currencies saw Capital of $8.55 million over the past week, While the products offer exposure to Litecoin ($ LTC), a cryptocurrency commonly known as the silver to Bitcoin, gold saw inflows of $3.2 million.
Similarly, products offering exposure to Chainlink and Polkadot reached $1.73 million and $1.45 million respectively, while those offering exposure to Avalanche, XRP and Algorand saw Capital inflows were 1.43 million USD, 1.33 million USD and 1.04 million USD.
Cardano -focused products have seen inflows below the $1 million mark, although they have surpassed outflows of Bitcoin Cash, Solana , and Short Bitcoin products by over $300,000 each .
In contrast, Ethereum-focused products saw outflows of $32.2 million, while products providing exposure to the leading cryptocurrency, Bitcoin, saw Outflows were $192.33 million as investors exited the crypto space amid growing concerns that the Federal Reserve will keep interest rates high for longer. more than expected.
According to the report, the total volume of these products decreased slightly to 18 billion USD.
Analysts believe that waning investor interest in ETPs, especially those focused on Bitcoin, may be a reaction to the Federal Reserve's hawkish stance on interest rates. Expectations of prolonged high interest rates could dampen investor enthusiasm for riskier assets such as digital currencies.
These flows come at a time when Bitcoin may soon see a significant increase after the available supply on centralized cryptocurrency exchanges is likely to dry up , while it will becomes twice as rare as gold after the upcoming halving event.
According to a report published by popular cryptocurrency exchange Bybit, the upcoming halving event is likely to lead to a short-term squeeze as there are only nine months left before the total supply of Bitcoin on exchanges This centralized transaction is exhausted.
The report details that there are only 2 million BTC left on crypto exchanges, and assuming daily inflows of $500 million from spot Bitcoin exchange-traded funds (ETFs), approximately 7,142 BTC will leave from the reserve fund on the exchange every day.
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