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May 22, 2023

Institutions Sell Crypto Holdings for Fifth Consecutive Week – But XRP, Litecoin and One More Altcoin See Inflows

By Daily Hodl Staff

Digital assets manager CoinShares says institutional investors continue to be cautious on the market as crypto suffers outflows for the fifth week in a row.

In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors sold off $32 million in crypto holdings last week for a fifth consecutive week of outflows.

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“Digital asset investment products saw outflows totaling US $32 million, representing the 5th consecutive week of outflows totaling US $232 million (0.7% of total assets under management). Volumes totaled US $900 million for the week, 40% below this year’s average. Volumes for the broader market on trusted exchanges hit their lowest level since late-2020 at US $20 billion for the week.”

Source: CoinShares

Bitcoin (BTC), suffered the brunt of the outflows, totaling $33 million, according to CoinShares.

“The outflows in Bitcoin of US $33 million represented most of the negative sentiment, as it has done over the last 5 weeks. Short-Bitcoin also saw minor outflows of US $1.3 million for the week. Combined outflows for these investment products now total US $235 million over the course of the last 5 weeks. It is unclear why there is such coordinated negative sentiment for both long and short investment products.”

While leading smart contract platform Ethereum (ETH) suffered $1 million in outflows, other altcoin products fared much better. Multi-asset investment products, those investing in more than one crypto, took in $1.6 million in inflows. Meanwhile, Avalanche (AVAX), Litecoin (LTC), and XRP products enjoyed inflows of $0.7 million, $0.3 million, and $0.2 million, respectively.

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