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February 20, 2023

Institutional Investors Make Moves As Crypto Markets See Largest Outflows of Capital Since Last Year: CoinShares

By Daily Hodl Staff

Digital assets manager CoinShares says large institutional investment digital asset products saw the biggest outflows of the year last week.

In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional digital asset investment products suffered huge outflows in the middle of last week but that the mood had improved by the end of the period.

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“Digital asset investment products saw outflows totaling US$32m last week, the largest since late December 2022. Mid-way through last week the outflows were much higher at US$62m, but sentiment improved by Friday with inflows of US$30m.”

Source: CoinShares

Per usual, Bitcoin (BTC) products took the heaviest hit of outflows. Meanwhile, short-Bitcoin products enjoyed inflows. Short-BTC products have enjoyed the second-most year-to-date inflows, only behind long-BTC products.

“Bitcoin bore the brunt of the negative sentiment, seeing nearly US$25m of outflows, while short-bitcoin investment products saw inflows of US$3.7m and has seen some of the largest inflows YTD of US$38m, second only to Bitcoin with US$158m.”

Altcoins were a mixed bag of inflows and outflows. While XRPBNB, Fantom (FTM), Aave (AAVE), and Decentraland (MANA) institutional investment products all saw minor inflows of less than $0.36 million, Ethereum (ETH), Polygon (MATIC), Cosmos (ATOM) and Avalanche (AVAX) investment vehicles all suffered outflows.

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“The negative sentiment was very mixed, with Ethereum, Cosmos, Polygon and Avalanche seeing outflows of US$7.2m, US$1.6m, US$0.8m and US$0.5m respectively. While Aave, Fantom, XRP, Binance and Decentraland all saw inflows between US$0.36m — US$0.26m.”

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