In April, for the second consecutive week, crypto-related investment products saw outflows amounting to about $206 million, as reported by CoinShares. Despite Bitcoin's recent halving, which usually generates excitement, investor interest in the leading digital asset remained subdued, resulting in outflows of $192 million.

Conversely, short-term investors took advantage of the halving event to reinforce their positions, injecting $300,000 into the market.

The outflows were notably observed in US-based Bitcoin exchange-traded funds (ETFs), including Grayscale's GBTC, ProShares BITO, and Ark 21 Shares' ARKB, as reported by CryptoSlate. James Butterfill, Head of Research at CoinShares, explained that these outflows indicate waning interest among ETP/ETF investors, possibly due to speculations regarding further delays in rate cuts by the Federal Reserve.

Butterfill also highlighted a decrease in trading volumes of ETPs, which dropped to $18 billion last week, representing a smaller share of total BTC volumes compared to a month ago.

Investors are increasingly showing interest in lesser-known altcoins like Chainlink, Polkadot, Litecoin, Cardano, and XRP, collectively attracting over $7 million in inflows last week. However, Ethereum witnessed its sixth consecutive week of outflows, totaling $34 million, with negative month-to-date flow of $85 million and year-to-date flow of -$11 million. Solana experienced modest outflows of $300,000, while blockchain equities recorded their 11th consecutive week of outflows, amounting to $9 million.

Butterfill attributed the outflows from blockchain equities to investor concerns about the impact of mining halving on mining companies.