The latest report from the analyst firm CoinShares shows that the outflow of funds from institutional Bitcoin investment products continues to surge.
According to CoinShares’ weekly crypto asset fund flow report on June 7, institutional investors are continuing to reduce their exposure to bitcoin, and bitcoin investment products have seen a record outflow of US$141 million in the past week.
Fund flow of crypto investment products: CoinShares
During the violent collapse of the crypto market in mid-May, institutions dumped a large number of crypto assets. Between May 10 and 16, institutions withdrew nearly 100 million U.S. dollars from crypto products. Towards the end of May, the rate of capital outflow slowed briefly.
The trading volume of Bitcoin products also fell sharply. Compared to the weekly average in May, trading activity in the first week of June decreased by 62%.
Although CoinShares stated that institutions’ sentiment towards Bitcoin has turned bearish since the beginning of May, it emphasized that the outflow of funds is less than one-tenth of the inflow of funds in 2021:
“Outflows accounted for 8.3% of this year’s net inflows, which is still relatively small compared to the outflows in early 2018.”
Since the beginning of 2021, more than 4.2 billion US dollars of funds have flowed into Bitcoin products, and Bitcoin currently accounts for 65.9% of the locked-in capital of cryptocurrency investment products.
The decline in institutional demand for Bitcoin is again consistent with the increase in institutional demand for Ethereum. After receiving an inflow of $33 million in the past week, Ethereum currently accounts for more than 26.8% of the total asset under management (AUM) of crypto investment products.
CoinShares also pointed out that investors are seeking to obtain XRP exposure and are interested in ADA investment products. XRP’s inflow of funds totaled 7 million U.S. dollars, which is the largest weekly inflow since April, while ADA’s inflow of funds was 450 Ten thousand U.S. dollars.
According to CoinGecko’s data, Ethereum continues to replace Bitcoin as the most traded non-stablecoin crypto asset in the broader crypto market.
In the past 24 hours, Ethereum’s trading volume was approximately US$37.4 billion, second only to the stablecoin Tether’s daily trading volume of US$75.5 billion. In comparison, Bitcoin’s transaction volume in 24 hours was $32.9 billion.