Crypto Analysts Warn of US Institutions Pulling $206M 😱

Crypto Analysts Warn of US Institutions Pulling $206M 😱

Title: CoinShares Reports Second Consecutive Week of Crypto Institutional Investment Outflows 📉

Digital assets manager CoinShares reveals that crypto investment products suffered outflows for the second week in a row, totaling $206 million last week and $312 million over two weeks.

Outflows Triggered by Rising Interest Rates 📈

  • CoinShares notes that investor interest in crypto ETFs and ETPs is decreasing due to concerns about potential interest rate hikes.
  • The outflows totaled $206 million, with ETP trading volumes slightly decreasing to $18 billion.
    • This represents 28% of total bitcoin volumes, compared to 55% a month earlier.
    • ETP/ETF investors are losing interest, anticipating that the FED will maintain high interest rates for an extended period.

Institutional Flows 👩‍💼👨‍💼

  • Institutional investors in Canada and Switzerland contributed $30 million and $8 million in inflows, respectively.
  • However, Germany experienced minor outflows of $8 million, while the US saw a significant outflow of $244 million due to negative ETF sentiment.


Impact on Major Cryptos 📊

  • The outflows hit Bitcoin hard, resulting in a loss of $192 million, while Ethereum saw outflows of $34 million for the sixth consecutive week.
  • Despite the overall trend, some crypto products attracted inflows, with multi-asset investment vehicles receiving $9 million.
  • Litecoin and Chainlink also saw inflows of $3.2 million and $1.7 million, respectively.

Closing Thoughts on Coin Investment Outflows 💭

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As crypto investment products witnessed their second straight week of outflows, concerns about rising interest rates appear to be the primary driver. With investors showing reluctance towards ETFs and ETPs, the market sentiment is cautious. While certain cryptos managed to attract inflows, Bitcoin and Ethereum continue to suffer from significant outflows, highlighting the impact of market trends on individual cryptocurrencies.

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