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March 6, 2023

Institutional Investors Move Money Out of Crypto Markets for Fourth Straight Week: CoinShares

By Daily Hodl Staff

Digital assets manager CoinShares says institutional crypto investment products suffered their fourth consecutive week of outflows last week.

In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional crypto investment products suffered outflows of nearly $20 million last week, along with minor inflows into short investment products.

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“Digital asset investment products saw minor outflows totaling US$17m last week, marking the 4th consecutive week of negative sentiment.”

Source: CoinShares

Bitcoin (BTC) products took the heaviest hit of outflows at $20.1 million. Meanwhile, short-Bitcoin products saw minor inflows of $1.8 million. Short-BTC products have enjoyed the second highest year-to-date inflows, about $50 million to Bitcoin’s $126 million.

Coinshares says it believes regulatory uncertainty may be the cause of investors rushing to short-BTC products.

“Despite the recent inflows into short-bitcoin, total assets under management (AuM) have risen by only 4.2% YTD [year-to-date] compared to long-bitcoin AuM having risen by 36%, suggesting short positions have not delivered the returns some investors expected this year so far. Nonetheless, it likely represents continued investor concerns over regulatory uncertainty for the asset class.”

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Most altcoin investment products enjoyed minor inflows last week. Multi-asset investment vehicles, those investing in a basket of digital assets, raked in $0.8 million in inflows last week. Ethereum (ETH) products took in $0.7 million, while Solana (SOL) vehicles took in $0.3 million. Binance (BNB) and Cosmos (ATOM) products both suffered minor inflows, $0.4 million and $0.2 million, respectively.

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Featured Image: Shutterstock/Aleksandr Kukharskiy