Amid negative sentiment around the crypto market, institutional investors pulled out approximately $102 million last week from digital asset investment products. The outflows were mainly focused on Bitcoin as nearly $57 million worth of investment has left BTC products.
Ethereum’s struggle continued last week as the world’s second most valuable digital asset witnessed weekly outflows worth $41 million. Year-to-date outflows related to ETH investment products now stand at around $387 million.
“Digital asset investment products flows remain choppy in anticipation of hawkish monetary policy, with steady daily outflows last week totaling US$102m. What has pushed Bitcoin into a 'crypto winter' over the last 6 months can by and large be explained as a direct result of increasingly hawkish rhetoric from the US Federal Reserve. Regionally, the majority of outflows were focused on the Americas, totaling US$98m with Europe seeing just US$2m outflows. Bitcoin saw outflows totaling US$57m last week bringing month-to-date outflows to US$91m,” CoinShares highlighted in its weekly report.
By the end of the last week, the total value of global BTC assets under management stood at $26 billion, which is significantly lower compared to more than $50 billion in November last year.
Crypto Winter
The institutional sentiment has been hit hard by the recent correction across the crypto market. In addition to Bitcoin and Ethereum, inflows related to multi-asset products saw a major drop last week.
“Aside from Multi-asset investments products, which saw US$4.7m of outflows last week, investors steered clear of adding to altcoin positions. Blockchain equities have not escaped the negative sentiment with outflows of US$5m last week. Total AuM has fallen 54% from its November 2021 peak to US$1.9bn,” the report added.
Yesterday, the market cap of digital currencies dipped below $1 trillion after Bitcoin and Ethereum saw sharp price declines.
