Appetite for global cryptocurrency funds continued to diminish for the second consecutive week due to concerns among investors that interest rates will remain high for the foreseeable future, as per a report by CoinShares International Ltd.
During the week ending on April 19, outflows of crypto assets amounted to \(206 million, with a significant portion of \)244 million being withdrawn from US ETFs. While existing funds experienced outflows, newly launched ETFs still attracted inflows, albeit at a reduced rate compared to previous weeks.
The trend indicates that investors are withdrawing funds due to the anticipation that the Federal Reserve will maintain high interest rates for an extended period, as highlighted in the CoinShares report.
Crypto Tracker
- Total Cryptocurrency Fund Flows: 13,016 (3.6%)
- Total Global Crypto Fund Assets: 5,549,550 (1.71%)
- Total Weekly Crypto Fund Flows: 50,112 (0.79%)
- Grayscale Bitcoin Trust Flows: 265,773 (0.28%)
- Weekly Change in Crypto Fund Assets: 83 (-0.11%)
In the US market, Bitcoin ETFs experienced outflows amounting to \(192 million during the week. Despite this, the report notes that only a few investors viewed this as an opportunity to short the market. Notably, Bitcoin, the leading cryptocurrency, saw a 3% increase, reaching \)66,588 by 3:59 p.m. on Monday in New York.
Furthermore, funds holding Ethereum encountered outflows of $34.2 million, continuing a streak of six consecutive weeks of withdrawals.
The report also highlighted that stocks associated with cryptocurrencies sustained outflows for the 11th successive week, totaling $9 million. Investors remain concerned about the impact of the halving on crypto-mining companies, contributing to the sustained outflows in this sector.