CoinShares: Institutional investors are withdrawing capital from digital assets – Bits Media

Analytical company CoinShares reported in its weekly report, that the April statement by the Open Market Committee (FOMC) pushed investors to “flight” from the crypto market.

According to a CoinShares report, last week institutional investors pulled out of cryptocurrency funds $97 million. Analysts reported, that the outflow of funds has been observed for the second week and, in their opinion, may be a result of recent profit taking and a reaction to the FOMC announcement (FOMC), which was published in early April.

The authors of the report noted, that Bitcoin is becoming more and more “sensitive” to interest rates, like other means of saving. If in the previous week the outflow of money from cryptocurrency funds was observed mainly in European markets, then last week investors massively withdrew capital from US markets. Analysts think, that this may be a belated reaction to the statement of the FOMC, a structural division of the Federal Reserve System (FRS) USA.

CoinShares clarifies, what investors withdrew from bitcoin funds $73 million, as a result, the outflow from the beginning of the month amounted to $196 million. Bitcoin market volume decreased by 32% compared to the weekly average 2022 year and amounted on regulated exchanges $11.5 billion. ETH investors withdrew last week $27 million. The Solana and Cardano markets are seeing similar capital outflows of 0.7 million.

The report says, that the amount of funds, invested in investment products based on a basket of cryptocurrencies, grew by another week over the past week $5.3 million. IN 2022 year they are in demand among investors.

Recently, the founder and CEO of the investment company Inviertis, Rebeca Perez (Rebecca Perez) told, that due to the tense geopolitical situation, investors increasingly began to purchase real estate in Europe using cryptocurrencies. She thinks, that capital from crypto markets began to gradually flow into real estate.