Amidst the chaotic landscape of fluctuating interest rates and global unrest, crypto investors have pulled out massive amounts of funds from digital asset products for the second consecutive week. With uncertainty looming over traditional financial systems, it seems that the allure of cryptocurrency is only growing stronger.
Discovering the latest trends in digital asset investments can be a rollercoaster ride, and last week was no exception. According to the experts at CoinShares, a whopping $206 million was drained from various investment products. The majority of the withdrawals came from U.S. ETFs and other financial instruments that were backed by the powerhouse cryptocurrency, Bitcoin (BTC).
Last week, the global market saw a slight decline in ETP trading volumes, dropping from $21 billion to $18 billion. However, all eyes are still on Bitcoin as its trading activity continues to rise. Interestingly, just a month ago, ETFs made up a whopping 55% of all Bitcoin trading. But with the recent impact of macroeconomic factors, that number has dwindled to a mere 28%.
“The data suggests appetite from ETP/ETF investors continues to wane, likely off the back of expectations that the FED is likely to keep interest rates at these high levels for longer than expected.”
CoinShares report
Despite a turbulent market, U.S. ETFs and BTC both experienced significant losses, with Grayscale GBTC liquidations contributing to the decline. Surprisingly, bearish investors did not foresee the drop in prices and instead opted to pour large sums of money into short positions and products. Meanwhile, investment options offering short-Bitcoin funds saw a decrease of approximately $300,000 in funds.
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Breaking records and defying market trends, Ethereum has surpassed a staggering $34 million in outflows for the sixth consecutive week. Despite this impressive feat, the value of Ether (ETH) has remained relatively stagnant, with a mere 0.30% fluctuation reported by CoinMarketCap.
Breaking records yet again, the tumultuous world of blockchain equities saw a staggering $9 million in outflows this week, marking the 11th consecutive week of dwindling investor confidence in the crypto market. According to experts at CoinShares, the looming Bitcoin halving has sparked major worries among investors, particularly regarding its effects on BTC mining entities.