Crypto funds post second straight week of outflows: CoinShares

Cryptocurrency-focused funds logged outflows for the second straight week as traders braced for the latest Federal Reserve interest-rate decision, according to a report by CoinShares dated Tuesday. For the week ended April 28, digital asset investment products saw outflows of $72M, "in what we believe is a reaction to the likeliness of further interest rate hikes by the US Federal Reserve," the report said. That's up from the outflows of $30M recorded in the prior week. The Federal Open Market Committee's two-day monetary-policy meeting started Tuesday and it's largely expected to lift its benchmark rate by another 25 basis points, bringing the target range to 5.0%-5.25%. Since the Fed commenced its tightening cycle in March 2022, crypto prices have taken a hit , with bitcoin ( BTC-USD ) down 36.9% and ethereum ( ETH-USD ) off 38.5% . Over the last week, BTC and ETH slid 1.5% and 2.2% , respectively. Last week, bitcoin ( BTC-USD ) experienced the bulk of outflows, totaling $46M, while short-bitcoin products garnered the largest capital flight since December 2022. Ether ( ETH-USD ), too, saw outflows of $19M, marking the largest weekly outflows since its Merge last September. "Volumes remain subdued for the broader crypto market (50% less than year average) while ETP (exchange-traded product) investment product volumes at US$1.7bn for the week are 16% above the year average," CoinShares pointed out. More on Crypto Bitcoin: A Flash Crash And A Look At The Fundamentals Crypto-linked stocks slide as bitcoin retreats to below $29K Why did bitcoin go down today? Speculation on easing bank stresses