Crypto-backed investment funds saw capital outflows last week, while bearish sentiment also reduced speculators bitcoin (btc) Money as concerns spread about potentially higher interest rates in the US.
Last week’s outflow of crypto investment funds marked the third consecutive week of outflows from the sector, which serves as a proxy for traditional investors’ appetite for digital assets. Many of these either cannot or will not hold crypto directly, and therefore prefer to trade listed funds that are backed by digital assets.
Total outflows for the week came in at $1.9m, crypto research and investment firm CoinShares wrote in its latest reports On crypto fund flow.
latest data compared to $32m outflow The week before, that marked the biggest weekly outflow in 2023 so far. The large outflow that week was partly due to an ongoing offensive. Regulatory Action on Crypto in America.
“Low Volume Week”
In its weekly report, CoinShares described last week as a “low-volume week for investment products.”
However, it also noted that the modest outflow mirrored a broader bearish sentiment, noting that it was the short-bitcoin fund category that saw the largest inflows, with $9.9m being added to this type of fund. .
Opinion on the next near-term move for crypto remains polarized, with US investors pulling out more money than the global average, the report said.
There are also fears among US investors related to a rate hike by the Federal Reserve, and the Fed is likely to raise rates higher than before. Inflation in the US has proven difficult for the Fed to get under control, and many observers now believe that rates will need to remain high for much longer to get back to the Fed’s 2% inflation target.
bitcoin outflow
As usual, the largest inflows were seen in bitcoin-backed funds, which recorded an outflow of $11.7m for the week.
Ethereum (ETH) Fund inflows, on the other hand, saw no significant net change, while so-called multi-asset crypto funds – funds backed by a basket of digital assets – saw an outflow of $1.1m.
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