Cryptocurrency investment funds saw investors withdraw a total of $206 million over the last week, marking the second consecutive week of outflows. However, altcoins, including $LINK, $DOT, $XRP, and $ADA, saw significant inflows.

According to CoinShares’ latest Digital Asset Fund Flows report, cryptocurrency investment products focusing on multiple digital currencies saw $8.55 million of inflows over the past week, while products offering exposure to Litecoin ($LTC), a cryptocurrency often referred to as the silver to Bitcoin’s gold, saw $3.2 million of inflows.

Similarly, products offering exposure to Chainlink and Polkadot saw $1.73 million and $1.45 million, respectively, while those offering exposure to Avalanche, XRP, and Algorand saw $1.43 million, $1.33 million and $1.04 million of inflows.

Cardano-focused products saw inflows below the $1 million mark, although they surpassed the outflows Bitcoin Cash, Solana, and Short Bitcoin products saw of over $300,000 each.

In contrast, Ethereum-focused products saw $32.2 million of outflows, while products offering exposure to the flagship cryptocurrency, Bitcoin, saw $192.33 million of outflows as investors moved away from the cryptocurrency space amid rising concerns the Federal Reserve will keep interest rates high for longer than expected.

According to the report, the overall trading volume of these products dipped slightly to $18 billion.

Analysts believe the waning investor interest in ETPs, particularly those focused on Bitcoin, is likely a response to the Federal Reserve’s hawkish stance on interest rates. The expectation of prolonged high rates could dampen investor enthusiasm for riskier assets like digital currencies.

These flows come at a time in which Bitcoin could soon see a significant surge after the available supply on centralized cryptocurrency exchanges potentially runs out, while it’s set to become twice as rare as gold after its upcoming halving event. According to a report published by popular cryptocurrency exchange Bybit, the upcoming halving event will potentially lead to a short squeeze as there are only nine months left before the total supply of Bitcoin on these centralized exchanges is depleted.

The report details that there are only 2 million BTC left on cryptocurrency exchanges and, assuming a daily inflow of $500 million from spot Bitcoin exchange-traded funds (ETFs), around 7,142 BTC will be leaving exchange reserves on a daily basis.

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