Bears Are Coming! Bitcoin Outflow From the Market Continues
Bitcoin (BTC) institutional investment product outflows continue to grow even after pulling out a record $ 141 million last week, according to the Digital Asset Fund Flows Weekly report by market research firm CoinShares.
Institutional investors continue to mitigate the risks associated with Bitcoin.
After the significant collapse of the cryptocurrency market in May, strong institutional selling followed. At that time, institutions withdrew nearly $ 100 million between May 10-16, before the outflow slowed briefly.
In addition, the trading volume of BTC products in the first week of June was down 62% compared to the weekly average in May.
But CoinShares stressed that the outflow of funds is less than one tenth of the inflow of 2021:
“Outflows represent 8.3% of the net inflows seen this year and remain the lowest in relative terms compared to the outflows seen in early 2018.”
More than $ 4.2 billion of capital has been invested in Bitcoin products since the beginning of 2021, analysts noted. And currently 65.9% of all BTC capital is blocked in crypto investment products.
The decline in BTC demand again coincided with an increase in interest in Ether. ETH received $ 33 million in investment last week. Ethereum now accounts for over 26.8% of the total assets under management that are currently locked in crypto investment products.
CoinShares analysts also noted that investors are also interested in XRP and Cardano (ADA). Weekly XRP inflows are $ 7 million and ADA inflows are $ 4.5 million.