Crypto Market Sees Institutional Caution as Outflows Persist
CoinShares, a digital assets manager, reveals that institutional investors exercise caution in the market as cryptocurrency experiences outflows for the fifth consecutive week.
According to CoinShares‘ latest Digital Asset Fund Flows Weekly Report, institutional investors sold off $32 million worth of crypto holdings last week, marking the fifth week in a row with outflows.
The report states that digital asset investment products experienced outflows totaling $32 million, representing a cumulative outflow of $232 million over the past five weeks, which accounts for 0.7% of total assets under management.
Trading volumes for the week amounted to $900 million, which is 40% below the average for this year. The broader market volumes on trusted exchanges reached their lowest level since late 2020, amounting to $20 billion for the week.
Bitcoin (BTC) bore the brunt of the outflows, totaling $33 million, according to CoinShares.
The report highlights the lack of clarity regarding the coordinated negative sentiment observed in long- and short-investment products. The negative sentiment primarily revolves around Bitcoin, as it has been the case for the past five weeks.
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Short-Bitcoin also experienced minor outflows of $1.3 million during the week. These investment products have witnessed outflows amounting to $235 million over the last five weeks.
While Ethereum (ETH), the leading smart contract platform, saw outflows of $1 million, other altcoin products performed relatively better. Multi-asset investment products, which invest in multiple cryptocurrencies, attracted inflows of $1.6 million.
Additionally, Avalanche (AVAX), Litecoin (LTC), and XRP products enjoyed inflows of $0.7 million, $0.3 million, and $0.2 million, respectively.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
