CoinShares Reports Institutional Investors Withdraw $206M from Crypto Investments

As to the most recent results of CoinShares’ Digital Asset Fund Flows report, institutional investors have refrained from investing in cryptocurrency products for the second consecutive week, with a total outflow of $206 million. With this, the two-week total outflows to far have risen to around $312 million, continuing the trend started the previous week.

Canada and Switzerland had small inflows of $8 million and $30 million, respectively, while there were small withdrawals of $8 million from Germany. Nonetheless, there were notable withdrawals of $244 million from the US, which were mostly ascribed to the unfavorable perception of cryptocurrency exchange-traded funds (ETFs).

Asset-Specific Trends

Bitcoin (BTC) bore the brunt of the outflows, shedding $192 million, while Ethereum (ETH) products sustained outflows for the sixth consecutive week, totaling $34 million. Despite these downturns, certain crypto products bucked the trend, attracting inflows. Multi-asset investment vehicles and specific assets like Litecoin (LTC) and Chainlink (LINK) garnered inflows of $9 million, $3.2 million, and $1.7 million, respectively.

According to CoinShares, investor apprehension over prospective interest rate rises is the reason behind the fall in interest in cryptocurrency exchange-traded funds (ETFs) and ETPs. With concerns growing about the Federal Reserve’s interest rate policy, $18 billion worth of ETP trades have decreased. Interestingly, compared to prior months, these volumes make up a lesser percentage of all bitcoin sales, suggesting that investor interest in ETPs and ETFs is declining. This shift in attitude is probably due to anticipation of the Federal Reserve maintaining high interest rates for an extended period of time.