CoinShares, a digital assets manager, has reported that institutional investments in crypto products experienced outflows for the second consecutive week. According to CoinShares’ latest report on digital asset fund flows, these products lost $206 million in outflows last week, bringing the total outflows over the past two weeks to nearly $312 million.
The decrease in investor interest in crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs) can be attributed to concerns about rising interest rates. CoinShares stated, “Digital asset investment products saw outflows for the second consecutive week totaling $206 million, with trading volumes in ETPs slightly declining to $18 billion. These volumes represent a smaller percentage of total bitcoin volumes, which continue to rise, at 28%, compared to 55% a month ago. The data suggests that appetite from ETP/ETF investors continues to decline, likely due to expectations that the Federal Reserve will maintain high interest rates for a longer period than anticipated.”
While institutional investors in Canada and Switzerland contributed inflows of $30 million and $8 million, respectively, Germany experienced minor outflows of $8 million. On the other hand, negative sentiment towards US ETFs resulted in significant regional outflows of $244 million.
Bitcoin (BTC) bore the brunt of the outflows, losing $192 million. Ethereum (ETH) products saw outflows for the sixth consecutive week, totaling $34 million last week.
However, some crypto products managed to attract inflows. Multi-asset investment vehicles, which invest in more than one cryptocurrency, received $9 million in inflows last week, while Litecoin (LTC) and Chainlink (LINK) gained $3.2 million and $1.7 million, respectively.
It is important to note that the opinions expressed in this article are not investment advice. Investors should conduct their own research before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at the individual’s own risk, and any losses incurred are the responsibility of the investor. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor is it an investment advisor.
