Ethereum

Reserve

Bitcoin

Standard

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<p class="has-drop-cap">The 6-week run of net inflows in digital asset investment products has ended as investors took profits last week after the recent crypto rally. Digital asset funds saw $30 million in outflows last week, most of which were focused on Bitcoin, <a aria-label="according to CoinShares (opens in a new tab)" href="https://blog.coinshares.com/volume-128-digital-asset-fund-flows-weekly-report-827534831424" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">according to CoinShares</a>.</p> 
<h3 id="ethereum-sees-inflows-after-successful-upgrade">Ethereum Sees Inflows After Successful Upgrade</h3> 
<p>Digital asset funds recorded $30 million in outflows last week, terminating the prior 6-week inflow streak, according to the latest CoinShares report. The change in sentiment is likely because investors took profits after the price of <a href="https://www.reuters.com/technology/bitcoin-pushes-past-30000-investors-eye-end-rate-rises-2023-04-11/" target="_blank" aria-label="Bitcoin exceeded (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">Bitcoin exceeded</a> the $30,000 mark earlier this month.</p> 
<p>The most significant portion of the outflows was in the US and Canada, at $21.9 million and $32 million, respectively. The negative sentiment in North America was offset by optimism in Germany, which registered $29 million in inflows.</p> 
<p>According to the report, outflows were almost entirely focused on Bitcoin-related funds, totaling $53 million last week. In the past four weeks, Bitcoin investment products saw four consecutive weeks of net inflows of $310 million.</p> 
<p>As opposed to <a href="https://tokenist.com/digital-asset-funds-see-largest-weekly-inflows-since-july-2022/" rel="dofollow" class="deco-link">previous weekly reports</a>, Ethereum investment funds saw $17m million in inflows this week as investors gained confidence in the world’s second-biggest cryptocurrency after the successful completion of the Shapella upgrade. Interestingly, the majority of Ethereum inflows came from Europe. Short-bitcoin investment funds also recorded minor inflows last week.</p> 
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<h3 id="what-fueled-bitcoin-s-recent-rally">What Fueled Bitcoin’s Recent Rally?</h3> 
<p>The end of the 6-week run of inflows for Bitcoin funds follows the latest rally in the top cryptocurrency that saw its price break above the $30,000 psychological level for the first time in 10 months. That week, digital asset funds <a href="https://blog.coinshares.com/volume-127-digital-asset-fund-flows-weekly-report-cc03576c08ac" target="_blank" aria-label="saw inflows of $114 million (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">saw inflows of $114 million</a>, of which $104 million was seen in Bitcoin-related products.</p> 
<p>The restored positive sentiment around digital assets comes as investors keenly await the end of the interest rate-hiking cycle by the Federal Reserve and other global central banks. The Fed has been <a href="https://tokenist.com/march-brings-another-25-bps-hike-despite-worries-stemming-from-bank-crisis/" rel="dofollow" class="deco-link">raising interest rates</a> nonstop since March 2022, putting severe pressure on cryptocurrencies and other risk assets.</p> 
<p>But now, rates are near the expected peak of above 5%, implying one more 0.25 percentage point hike at the Fed meeting next month. Analysts at Standard Chartered believe the end of the tightening cycle could propel Bitcoin’s price to a <a href="https://tokenist.com/crypto-winter-is-over-btc-to-hit-100000-by-2024-standard-chartered/" rel="dofollow" class="deco-link">whopping $100,000</a> by the end of 2024 as crypto winter likely approaches its end.</p> 
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<p><em><strong>Will we see another run of inflows in digital asset investment products after the Fed stops raising rates? Let us know in the comments below.</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/six-week-streak-of-net-inflows-for-digital-asset-funds-ends-as-investors-take-profits/">Six-Week Streak of Net Inflows for Digital Asset Funds Ends as Investors Take Profits</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Six-Week Streak of Net Inflows for Digital Asset Funds Ends as Investors Take Profits

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