Investing in digital asset funds It decreased for the second week in a row. $206 million was withdrawn between April 15-19, according to data from digital asset investment firm CoinShares.
fund Bitcoin Shedding has been observed over the past week. With $192 million leaving the market before the halving, Ether funds faced $34 million in outflows for the sixth week in a row.
Investment in blockchain stocks has also decreased. The industrial sector saw money outflow for the 11th straight week, totaling $9 million.
According to CoinShares, the downtrend is likely the result of investor concerns about rising interest rates in the United States. This may make less risky financial instruments more attractive compared to more volatile assets such as cryptocurrencies.
The Federal Reserve is expected to ease monetary policy in mid-2024 if economic conditions are consistent. But the latest inflation data has dashed those hopes. This is because the annual Consumer Price Index in March rose 3.5%, exceeding expectations for the third month in a row. And it indicates that lower rates may not materialize until 2025.
“The data suggests that demand from ETP/ETF investors remains subdued, likely tempered by expectations that the Fed is likely to hold interest rates at these high levels longer than expected.”
Bitcoin ETF inflows have slowed significantly since peaking in March. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) is the largest ETF in terms of assets managed. It has maintained steady levels of investor interest this month, attracting $1.4 billion in positive flows as of April 19.
refer : cointelegraph.com
picture dailyhodl.com
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