According to a USB study of about 160 products, April will witness the largest outflow of crypto ETFs ever, with almost $417 million pushed out by investors.
Since the end of March, Purpose’s bitcoin product has received over $220 million in funding.
No influx of new investors
Crypto fever appears to be dissipating, as it did during the boom and crash of 2017 and 2018. The massive surge of new investors that the crypto industry has experienced in recent years is no longer being celebrated.
At present, the great majority of the population has little interest in cryptocurrencies because they are too volatile and complicated, said James Malcolm, director of currency and crypto research at UBS.
According to him, in order for investor interest to return, greater clarity in the regulatory process is required, which is still a long way off, and investors may return if prices begin to climb again.
One of the reasons bitcoin is stuck in a rut is because the majority of the coin supply is being transferred to long-term holders’ accounts. The great majority of coins removed from exchanges are taken offline and stored in cold storage, meaning they are unlikely to be traded.