For the second consecutive week, Bitcoin (BTC) investment products took a major hit as outflows reached $73 million. Overall, outflows from all crypto investment products stood at $97 million last week amid a drop in the market cap of digital assets.
So far in April 2022, Bitcoin investment products have seen outflows worth $196 million. Weekly volumes in BTC products also dropped significantly to $651 million. However, net year-to-date inflows in Bitcoin investment products are still in positive territory at $145 million.
Altcoins like Ethereum, Solana and Cardano witnessed a similar trend last week as outflows related to the mentioned investment products came in at $27 million, $0.7 million and $0.7 million, respectively.
“Digital asset investment products saw outflows totaling US$97m last week. The outflows represent the second week in what we believe is likely a result of recent profit-taking and a reaction to the more hawkish FOMC statement released in early April. We have witnessed Bitcoin becoming increasingly interest rate 'sensitive' over the course of 2022, in a similar way to other stores of value. The prior week to last week saw outflows primarily from the US, while last week most of the outflows were from Europe (88%) in what might be a delayed reaction to the FOMC statement,” CoinShares noted.
Bitcoin Volumes
BTC volumes on leading digital exchanges have dropped in the past few weeks after its price failed to break above $45,000. The movement of the world’s largest cryptocurrency away from crypto trading platforms has also accelerated.
“Investors look to have sold out of Short-Bitcoin investment products, following a few weeks of inflows. Outflows last week were US$1.8m, representing 16% of total assets under management. Blockchain equities remain unaffected with inflows totaling US$23m last week,” CoinShares’ weekly digital asset fund flows report highlighted.
