Bitcoin (BTC), Cryptocurrency, News

A Record $141M Was Withdrawn By Institutional Investors From BTC Investment Products Last Week

Companies invested in Bitcoin have withdrawn a new high of $141m from BTC investment products in the previous week. The most recent report by Coinshare indicates that outflows by companies invested in Bitcoin investment products are growing.

Following the report by CoinShares, Institutional investors are reducing BTC exposure with Bitcoin investment product outflow recording a new high of $141m last week.

The statistics show big institutions getting rid of BTC during a substantial digital asset market crash, with companies withdrawing close to $100m from digital asset products from the 10th of May and the 16th of May. However, the outflow did slow down as the month came close to the end.

The trading volume for Bitcoin products is additionally declining, as the seven days of June records a 62 percent decline in trading activity in comparison with the last month’s average.

Even though the report seems worrying to untrained eyes the spotlighted outflows barely represents 1/10 of this year’s inflow:

As the report states the total outflows represented about 8.3 percent of the total inflows recorded in 2021 and the outflow is still manageable compared to what was witnessed back at the start of 2018.

From the beginning of the year, greater than $4.2b in investment has moved to BTC products. The current Bitcoin market investment inflow represents about 65.9 percent of all investment locked in digital assets products.

One can assume that the downfall in Bitcoin demand can be directly related to the Ethereum increase in institutional demand. As ETH represents at least 26.8 percent of the total AUM presently set in place in digital assets investment products after getting inflow close to $33m the previous week.

The report from CoinShares also mentions that investors are also looking at ADA and XRP investment products, as ADA’s inflows come at $4.5m while XRP totals around $7m, which itself is a record high for XRP.

Following the statistics from CoinGecko, ETH has continued to attract interest away from Bitcoin status of being the highest exchanged non-stablecoin digital resource in the crypto space.

Approximately $37.4b worth of ETH has been traded in the previous 24 hours which 2nds only to Tether in everyday trade. In comparison, BTC has racked up $32.9b in the last 24 hours.

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