A $141 million outflow from Bitcoin products indicates that institutions are negative on BTC: CoinShares

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This week, institutional investors withdrew a record $141 million from Bitcoin investment products.

According to the most recent data from analytics firm CoinShares, institutional BTC investment product outflows continue to rise.

According to CoinShares’ June 7 Digital Asset Fund Flows Weekly report, institutional investors are continuing to reduce Bitcoin exposure, with BTC investment products seeing a record outflow of $141 million this past week.

Capital flows for crypto investment products: CoinShares

The report comes on the heels of massive institutional selling during May’s catastrophic crypto market crash, with institutions withdrawing roughly $100 million from crypto goods between May 10 and May 16, until outflows somewhat halted towards the end of the month.

Trading volume for BTC items is also drastically falling, with a 62 percent decline in trade activity in the first week of June compared to the weekly average in May.

Despite describing institutional sentiment towards BTC as having turned bearish since early May, CoinShares highlighted the outflows represent less than one-tenth of 2021’s inflows:

“The outflows represent 8.3% of the net inflows seen this year and remain minimal on relative terms to the outflows seen in early 2018.”

More than $4.2 billion in money has flowed into Bitcoin products since the beginning of 2021, with BTC currently accounting for 65.9 percent of all cash locked in crypto investment products.

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The decline in institutional demand for Bitcoin has coincided with an increase in institutional appetite for Ethereum, with Ether now accounting for more than 26.8 percent of the combined assets under management (AUM) currently locked in crypto investment products, following $33 million inflows this week.

CoinShares also observed that investors seeking exposure to Ripple (XRP) and Cardano (ADA) investment products are showing interest, with XRP seeing $7 million inflows — its greatest weekly inflow since April — and ADA seeing $4.5 million inflows.

According to CoinGecko statistics, Ether has surpassed Bitcoin as the most-traded non-stablecoin crypto asset in the larger crypto markets.

Over the last 24 hours, around $37.4 billion in Ether exchanged hands, trailing behind stablecoin Tether’s $75.5 billion in daily activity. In comparison, Bitcoin’s 24-hour trade volume was $32.9 billion.


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