According to CoinShares, institutional investors are selling their crypto holdings in anticipation of future interest rate hikes

According to digital asset manager CoinShares, Institutional investors are wary of the market as crypto endures significant outflows for the second consecutive week.

According to CoinShares’ most recent Digital Asset Fund Flows Weekly Report, institutional investors are unloading their cryptocurrency holdings due to concerns about future interest rate rises.

For the second week in a row, investors pulled $72 million out of digital asset investment products, which we attribute to apprehension about the prospect of more interest rate rises from the US Federal Reserve in May.

Bitcoin (BTC) experienced the majority of the outflows. Short-Bitcoin assets experienced outflows for the first time this year, according to CoinShares. A similar fate happened to Ethereum (ETH)-based products.

Bitcoin experienced the preponderance of outflows totaling $46 million last week, while short-Bitcoin experienced its largest outflows since December 2022, totaling $7.8 million. Short-bitcoin remains the year-to-date leader in terms of net inflows, with $119 million.

Last week, Ethereum saw outflows totaling $19 million, its highest weekly outflows since the Merge in September 2022.

Despite large outflows for the leading cryptocurrencies by market capitalization, a few altcoins defied the trend, attracting minor inflows despite the overall decline. Institutional investment products from Solana (SOL), Algorand (ALGO), and Polygon (MATIC) attracted inflows of $0.2 million, $0.17 million, and $0.14 million, respectively.

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