(Bloomberg) — Appetite for global crypto funds continued to decline after a second week of outflows amid investor concerns that interest rates won’t be coming down any time soon, according to a report from CoinShares International Ltd.
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Crypto asset outflows totaled $206 million in the week through April 19, according to the report. Investors pulled $244 million from US ETFs, with the outflows coming mostly from incumbent funds, while newly issued ETFs continued to see inflows, though lower than in prior weeks.
The data suggest that investors are pulling funds “likely off the back of expectations that the Fed is likely to keep interest rates at these high levels for longer than expected,” CoinShares said in the report.
US spot Bitcoin ETFs, which began trading earlier this year after receiving approval from the US Securities and Exchange Commission, saw $192 million in outflows in the week, “but few investors saw this as an opportunity to short,” according to the report. Bitcoin, the largest cryptocurrency, climbed 3% to $66,588 as of 3:59 p.m. Monday in New York.
Funds holding Ethereum had outflows of $34.2 million, marking a sixth week of outflows.
Crypto-linked stocks saw an 11th consecutive week of outflows, totaling $9 million during the period, as “investors continue to worry over the consequences of the halving” on crypto-mining companies, according to the report.
Read more: Bitcoin ‘Halving’ Cuts Supply of New Tokens in Threat to Miners
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