April 2022 to See Record Cash Fleeing Crypto ETFs As Interest Wanes
The broader cryptocurrency market has remained largely choppy for the month of April 2022 as Bitcoin (BTC) and the overall crypto market are down by 10% each. As per the latest Bloomberg report, the investors’ interest in Bitcoin is waning.
This is clear from a number of factors such as a drop in online searches, fewer crypto transactions, and crypto funds seeing massive outflows. On the other hand, analysis from asset management giant UBS shows that April is set to record the largest crypto-ETF outflows with investors pulling out nearly half-a-billion dollars this month.
The Bloomberg report notes that since the end of March 2022, the Purpose Bitcoin ETF has alone registered outflows of $220 million. Speaking to Bloomberg, James Malcolm, head of foreign exchange and crypto research at UBS said:
“The vast majority of the population seem to have little interest in crypto because it’s too complicated, too volatile, too strange. So in a sense, we’re stuck at the moment.”
Crypto ETF Outflows Amid Fed’s Hawkish Stand
Fed’s aggressive stance towards controlling soaring inflation has cast a shadow on fund flows into risk-ON assets and crypto ETFs. Bitcoin is still trading 40% lower from its all-time high of $69,000 and shall continue that way.
As interest remains muted, the aggregated trading volumes across crypto exchanges such as Kraken and Coinbase have fallen. Besides, the social conversation and Google searches for “Bitcoin” have also dropped.
UBS’s Malcolm says that for the interest to pick up again, industry participants are waiting for regulatory clarity to emerge. However, if the prices start to rally again, investors could return once again, he adds.
Malcolm said: “It either needs new people or it needs existing players to dedicate an increasingly large slice of resources to the industry”.
On the other hand, Analysts at Blockforce Capital say that a massive number of Bitcoins have moved into cold storage. The growth of BTC’s illiquid supply has accelerated which could be a positive sign. In a note to investors, the analysts wrote:
“We have only seen this level of outflow from exchanges four previous times since the start of 2018. Three of those instances correlated with a sharp upward movement in price not too long after.”
- SEC Chair Paul Atkins Says Crypto Is Top Priority At SEC CFTC Roundtable
- Legal Expert Breaks Down XRP’s Appeal as Ripple SWIFT Debate Heats Up
- Crypto Stakeholders Push Back as Banks Seek Yield Ban Provision in CLARITY Act
- Crypto ETFs Approval Faces Uncertainty as Government Shutdown Looms, Bloomberg Analyst Says
- Fed’s Hammack Backs Restrictive Policy Over Rate Cuts Amid Inflation Concerns
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
- XRP Price Prediction: How XRP Could React After October 2025 SEC ETF Decisions
- Aster Price Prediction as US President Adds $110M Worth of Tokens to His Portfolio
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
