Sunday, May 26, 2024
Home > News > Bitcoin News > Crypto investors remain skeptical, weekly outflows hit $206m

Crypto investors remain skeptical, weekly outflows hit $206m

Crypto investors withdrew hundreds of millions from digital asset products for the second week due to concerns over interest rates and geopolitical turmoil. 

According to CoinShares, digital asset investment products shed $206 million in net outflows last week. Withdrawals were recorded predominantly across U.S. ETFs and financial vehicles that Bitcoin (BTC) underpinned.

Global ETP trading volumes declined to $18 billion from $21 billion last week, although total BTC trading activity continued on the uptick. A month ago, ETFs constituted about 55% of all Bitcoin trading, but this number dwindled to around 28% because of macroeconomic factors. 

“The data suggests appetite from ETP/ETF investors continues to wane, likely off the back of expectations that the FED is likely to keep interest rates at these high levels for longer than expected.”

CoinShares report

While U.S. ETFs lost $244 million and BTC saw outflows of over $192 million, partly due to Grayscale GBTC liquidations, bearish investors did not anticipate lower market prices by deploying substantial capital to short positions and products. Investment vehicles offering short-Bitcoin funds noted around $300,000 in outflows.

Crypto proponents show little demand for Ether, blockchain stock

Ethereum continued a six-week outflow streak after marking another $34 million. The Ether (ETH) asset has traded flat over the past week, with only a 0.30% change noted by CoinMarketCap. 

Blockchain equities followed a similar pattern, amounting to $9 million in outflows and an 11th successive week of weakened crypto investor confidence. CoinShares analysts noted that investors are especially concerned about the impact of Bitcoin halving on BTC mining entities. 

ETH price chart | Source: CoinMarketCap


Follow Us on Google News

Source