Crypto Investors Flee Funds for Blockchain Stocks as Interest Rates Bite

Crypto funds have been hemorrhaging capital, with CoinShares' latest flow reports showing $1.47B in redemptions in May and $1.67B in June.

This marks one of the largest outflows from digital asset investment products this year, according to CoinShares' data.

At the same time, blockchain equity ETPs (exchange-traded products) have been quietly absorbing capital, with $72.6M flowing in just in January and a cumulative $617M pouring in over three weeks in April.

James Butterfill, Head of Research at CoinShares, attributes this shift to macroeconomic factors such as changing interest rates and geopolitical tensions, which are pushing investors towards what they perceive as higher-quality exposures.