Know about the details of crypto ETF demand drops in the second outflow week
According to a CoinShares International Ltd. report, the appetite for global crypto funds declined further after a second consecutive week of net outflows amid investor worries that interest rates will remain elevated.
According to the report, crypto investors pulled US$206 million from crypto assets in the week to April 19, while US$244 million were withdrawn from US crypto ETFs (exchange-traded funds). The majority of the withdrawals came from established funds, while new-to-market crypto ETFs continued to attract inflows, though at a slower pace than in recent weeks.
According to CoinShares, the data suggests that investors are pulling money “probably due to expectations that the Fed will continue to hold interest rates at these exceptionally high levels for an extended period.”
Bitcoin, the world’s largest cryptocurrency, rose 3% Monday to US$66.588 in New York, following a week of US$192 million in net outflows, according to a report published Monday. US spot Bitcoin exchange-traded funds (ETFs) launched earlier this year after being approved by the U.S. Securities and Exchange Commission (SEC). Still, few investors took advantage of the opportunity to short them.
The report said Ethereum funds had a net outflow of US$34,2 million, the sixth week in a row. At the same time, crypto-linked stocks recorded their eleventh straight week of net outflows, amounting to US$9 million, as investors continue to fret about the impact of halving on crypto-miners.
