Cryptocurrency investment funds saw investors withdraw a total of $206 million over the last week, marking the second consecutive week of outflows. However, altcoins, including $LINK, $DOT, $XRP, and $ADA, saw significant inflows.
Ngokuvumelana ne CoinShares’ latest Digital Asset Fund Flows report, cryptocurrency investment products focusing on multiple digital currencies saw $8.55 million of inflows over the past week, while products offering exposure to Litecoin ($LTC), a cryptocurrency often referred to as the silver to Bitcoin’s gold, saw $3.2 million of inflows.
Similarly, products offering exposure to Chainlink and Polkadot saw $1.73 million and $1.45 million, respectively, while those offering exposure to Avalanche, XRP, and Algorand saw $1.43 million, $1.33 million and $1.04 million of inflows.
Cardano-focused products saw inflows below the $1 million mark, although they surpassed the outflows Bitcoin Cash, Solana, and Short Bitcoin products saw of over $300,000 each.
In contrast, Ethereum-focused products saw $32.2 million of outflows, while products offering exposure to the flagship cryptocurrency, Bitcoin, saw $192.33 million of outflows as investors moved away from the cryptocurrency space amid rising concerns the Federal Reserve will keep interest rates high for longer than expected.
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According to the report, the overall trading volume of these products dipped slightly to $18 billion.
Analysts believe the waning investor interest in ETPs, particularly those focused on Bitcoin, is likely a response to the Federal Reserve’s hawkish stance on interest rates. The expectation of prolonged high rates could dampen investor enthusiasm for riskier assets like digital currencies.
These flows come at a time in which Bitcoin could soon see a significant surge after the available supply on centralized cryptocurrency exchanges potentially runs out, while it’s set to become twice as rare as gold after its upcoming halving event. According to a umbiko eshicilelwe i-cryptocurrency exchange Bybit edumile, umcimbi ozayo wokwehliswa kwesigamu uzoholela ekuminyanisweni okufushane njengoba sekusele izinyanga eziyisishiyagalolunye kuphela ngaphambi kokuthi kuphele ukunikezwa kwe-Bitcoin kulokhu kuhwebelana okumaphakathi.
The report details that there are only 2 million BTC left on cryptocurrency exchanges and, assuming a daily inflow of $500 million from spot Bitcoin exchange-traded funds (ETFs), around 7,142 BTC will be leaving exchange reserves on a daily basis.
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- Source: https://www.cryptoglobe.com/latest/2024/04/altcoins-shine-amidst-bitcoin-gloom-link-dot-ada-xrp-attract-investors-interest/
