- Digital asset investment products recorded outflows of $206 million last week.
- Bitcoin led the outflows with $192 million amid Fed interest rate fears.
Outflows from digital asset investment products more than doubled last week, setting off two consecutive bearish streaks. According to CoinShares reportthe outflow amounted to $206 million.
Bitcoin [BTC] led the outflow with $192 million, followed by Ethereum [ETH] at $32 million.
Bitcoin leads the outflow
Compared to the previous week ($106 million), last week’s outflows were twice as high, underscoring investors’ risk-off approach.
The US dominated the bearish sentiment, with US ETFs (exchange traded funds) responsible for outflows of $244 million.
Additionally, demand for new spot BTC ETFs declined as inflows remained subdued compared to previous weeks.
AMBCrypto’s sample at Farside Investors facts confirmed this. Between April 15 and 18, US spot BTC ETFs recorded a total of $264 million in outflows.
Total volumes linked to Bitcoin also shrank over the same period, which the report linked to interest rate fears.
Read part of the report;
“The data suggests that interest from ETP/ETF investors continues to decline, likely amid expectations that the Fed will keep interest rates at these high levels for longer than expected.”
Surprisingly, only a handful of investors took the opportunity to short Bitcoin amid interest rate fears, as short Bitcoin products only saw outflows of US$0.3 million, according to the report.
On the altcoin front, ETH’s $32 million outflow marked the sixth straight week, underscoring ETH’s rocky start to the second quarter. Solana [SOL] And Bitcoin cash [BCH] were closely followed, each with an outflow of $0.3 million.
However, Chain link [LINK] And Litecoin [LTC] recorded significant inflows, suggesting that this was the case investor favorites Over the same period.
It is worth noting that US spot BTC ETFs recorded net inflows on April 19 and 20 as BTC recovered above $66,000.
It will be interesting to see if this will move investors from ‘risk-off’ to ‘risk-on’ and strengthen inflows for digital asset investment products.