Investors Pull $206 Million from Crypto-Related Investment Products
According to a recent weekly report by CoinShares, crypto-related investment products experienced a second consecutive week of outflows in April. Despite the excitement surrounding Bitcoin’s recent halving event, investors showed subdued interest in the leading digital asset, with outflows totaling $192 million. However, short-term investors took advantage of the halving event to inject $300,000 into the market.
One contributing factor to the outflows was the US-based Bitcoin exchange-traded funds (ETFs) experiencing five consecutive days of outflows, primarily driven by Grayscale’s GBTC, ProShares BITO, and Ark 21 Shares’ ARKB. James Butterfill, the Head of Research at CoinShares, noted that these outflows indicate a declining interest among ETP/ETF investors, possibly due to speculations that the Federal Reserve may delay rate cuts.
Additionally, trading volumes of ETPs saw a decline, dropping to $18 billion last week. Butterfill highlighted that these volumes now represent a smaller share of total BTC volumes, decreasing from 55% a month ago to 28%.
On the other hand, altcoins like Chainlink, Polkadot, Litecoin, Cardano, and XRP drew in over $7 million in inflows last week, signaling a growing interest in lesser-known altcoins over major cryptocurrencies. Ethereum continued its downward trend, experiencing its sixth consecutive week of outflows amounting to $34 million. Solana saw more modest outflows of $300,000, while blockchain equities recorded their 11th consecutive week of outflows totalling $9 million.
Butterfill attributed the outflows from blockchain equities to investor concerns about the impact of mining halving on mining companies.
Overall, the market continues to see fluctuations in investor interest and activity across different cryptocurrencies and asset classes.
