CoinShares analysts have been recording outflows from crypto derivatives for the second week in a row

What’s new? Outflows from cryptocurrency derivatives totaled $206 million from April 15 to April 19, analysts at investment firm CoinShares said in a new report. According to them, the results of the past week indicate a drop in investor interest in cryptocurrency-based exchange-traded products/funds (ETPs/ETFs). They cite expectations regarding the actions of the US Federal Reserve, which is unlikely to ease monetary policy by cutting rates in the near term, as the main reason.

CoinShares report

What else is known? On a regional level, negative sentiment was seen mainly in the US, where outflows from spot bitcoin funds totaled $244 million. Thus, GBTC from Grayscale continues to face outflows, while other funds show inflows, but noticeably smaller compared to previous weeks.

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An $8 million outflow was also recorded in Germany. In turn, in Canada and Switzerland, the results of the week are positive: inflow of $30 and $8 million, respectively.

The outflow of funds from bitcoin-based products for the week amounted to $192 million, however, as analysts noted, “few investors saw this as an opportunity to short.” Moreover, short positions in BTC also saw outflows of $0,3 million.

The outflow of funds from Ethereum derivatives amounted to $34 million, negative results persisted for the sixth week in a row. At the same time, investment products based on a basket of assets recorded an inflow of $9 million, indicating an improvement in investor sentiment.

The most notable altcoins were Litecoin and Chainlink with inflows of $3,2 million and $1,7 million, respectively.

At the same time, for the 11th week in a row there was an outflow of capital from blockchain companies, from April 15 to 19 it amounted to $9 million. Analysts attributed this to investor concerns about the impact of bitcoin halving on mining companies.

The fourth halving in the Bitcoin network took place on April 20, following its results, the reward for mining a block was reduced from 6,25 to 3,125 BTC. Industry experts have repeatedly noted that this would force less efficient companies to leave the market due to reduced revenues.

From April 8 to April 12, CoinShares also recorded $126 million in outflows from crypto derivatives.