Last week, Bitcoin investment products witnessed record-breaking outflows after the world’s largest crypto asset briefly touched a low of $17,700, which is the lowest level since November 2020. Overall, weekly outflows from crypto investment products stood at $423 million.
BTC products accounted for outflows worth $453 million last week. Surprisingly, Ethereum investment products witnessed inflows worth almost $11 million. Last week, short-Bitcoin investment products saw inflows of approximately $15 million.
Despite Bitcoin’s price recovery from the recent lows, the crypto asset is trading down by almost 70% from its all-time highs in November 2021. Similar to retail traders, institutional investors are also pulling money out of the crypto market.
“The outflows were solely focused on Bitcoin, which saw net outflows for the week totaling US$453m, erasing almost all inflows year-to-date and leaving total Bitcoin AuM at US$24.5bn, the lowest point since the beginning of 2021. Short-Bitcoin saw inflows totaling US$15m due to the launch of the first US-based short investment product last week, while older short-investment products saw outflows. Ethereum saw inflows totaling US$11m, the first following 11 consecutive weeks of outflows,” CoinShares highlighted in its weekly digital asset fund flows report.
Regional Outflows
According to the details shared by CoinShares, Canadian exchanges and crypto services providers saw most of the outflows last week. On the other hand, European providers witnessed decent inflows during the mentioned period.
“Regionally, the outflows were almost solely from Canadian exchanges and one specific provider. The outflows occurred on 17th June but were reflected in last week’s figures due to trade reporting lags, and were likely responsible for Bitcoin’s decline to US$17,760 that weekend. Stripping out the US$493m outflows reveals that other providers saw aggregate inflows totaling US$70m, highlighting highly polarised sentiment amongst digital asset investors,” the report added.
The market cap of cryptocurrencies dropped by almost $2 trillion in the last seven months.
