US Institutional Investors $206 Million Outflows from Crypto ETFs & ETPs Amid Concerns Over Interest Rates: Impact on the Price of Bitcoin

According to the latest report from digital assets manager CoinShares, institutional investments in crypto products experienced their second consecutive week of outflows. The report reveals that digital asset investment products recorded a loss of $206 million in outflows last week alone, resulting in a total outflow of nearly $312 million over the past two weeks.

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Fear of Increasing Interest Rate and Dipping Interest on Crypto ETFs and ETPs

CoinShares reports that US investor interest in crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs) is waning amid concerns about rising interest rates.

"Digital asset investment products experienced outflows for the second consecutive week, amounting to $206 million, while trading volumes in ETPs slightly declined to $18 billion.

These volumes now represent a smaller proportion of total Bitcoin volumes, standing at 28% compared to 55% a month ago. The data indicates a diminishing appetite from ETP/ETF investors, likely influenced by the expectation that the Federal Reserve will maintain interest rates at elevated levels for an extended period."

Source: CoinShares

Crypto ETF in Canada, Switzerland, and Germany

Institutional investors in Canada and Switzerland contributed $30 million and $8 million in inflows, respectively, while Germany experienced minor outflows of $8 million. However, negative sentiment surrounding US ETFs resulted in significant regional outflows totalling $244 million.

Impact on the Price of Bitcoin

As usual, Bitcoin (BTC) bore the brunt of the outflows, losing $192 million. Ethereum (ETH) products also sustained outflows for the sixth consecutive week, totalling $34 million last week.

However, some crypto products did attract inflows. Multi-asset investment vehicles, which invest in more than one cryptocurrency, enjoyed $9 million in inflows last week, while Litecoin (LTC) and Chainlink (LINK) attracted $3.2 million and $1.7 million, respectively.