CoinShares Report: Bitcoin Investment Product Outflows Reach Record $141 Million Last Week

Institutional investors withdrew a record $141 million from bitcoin investment products last week.

A new report from analyst firm CoinShares shows that outflows from institutional bitcoin investment products continue to surge.

Institutional investors are continuing to reduce their bitcoin exposure, with bitcoin investment products seeing a record $141 million in outflows over the past week, according to CoinShares’ June 7 weekly report on digital asset fund flows.

CoinShares Report: Bitcoin Investment Product Outflows Reach Record 1 Million Last Week

Crypto Investment Product Flows: CoinShares

During the dramatic crypto market crash in mid-May, institutions sold off a large amount of crypto assets. between May 10 and 16, institutions pulled nearly $100 million out of crypto products, with the outflow slowing briefly near the end of May.

Trading volume in bitcoin products also fell sharply, with activity down 62% in the first week of June compared to the weekly average for May.

While CoinShares says institutional sentiment on bitcoin has turned bearish since early May, it emphasizes that outflows are less than one-tenth of the 2021 inflows.

“Outflows represent 8.3% of net inflows this year, which is still relatively small relative to outflows at the beginning of 2018.”

More than $4.2 billion has flowed into bitcoin products since the beginning of 2021, and bitcoin now accounts for 65.9% of locked-in capital in cryptocurrency investment products.

The decline in institutional demand for bitcoin again coincides with increased institutional demand for ethereum, which now represents more than 26.8% of total asset under management (AUM) for crypto investment products after receiving $33 million in inflows in the past week.

CoinShares also noted that investors are looking to gain exposure to XRP and have taken an interest in ADA investment products, with XRP inflows totaling $7 million, the largest single week of inflows since April, compared to $4.5 million in ADA inflows.

Ether continues to dethrone Bitcoin as the most traded non-stablecoin crypto asset in the broader crypto market, according to CoinGecko.

In the past 24 hours, ethereum traded around $37.4 billion, second only to stablecoin Tether’s $75.5 billion in daily trading volume. By comparison, Bitcoin traded $32.9 billion in the 24-hour period.

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