Digital assets manager CoinShares says institutional investors are weathering negative sentiment on the market as Bitcoin (BTC) and altcoins suffer major outflows for the sixth week in a row.
In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors sold off $39 million in crypto holdings last week, with trading volumes remaining low.
“Digital asset investment products saw outflows totaling US $39m, representing the 6th consecutive week of outflows totaling US $272m (0.8% of total assets under management). As per last week, volumes remain low, at 58% of this year’s average, this is also reflected in broader digital asset space volumes are only 38%.”
King crypto BTC took the brunt of the outflows, totaling $11 million, according to CoinShares. However, short Bitcoin products, which aim to profit off of downward moves in BTC, also saw outflows.
“In a repeat of prior weeks, the focus remains on Bitcoin, with outflows totaling US $11m. The outflows in short-Bitcoin also continued with US $11m. This run of outflows is far more dramatic for short-Bitcoin though, representing 36% of total AuM (assets under management), while total AuM has fallen from its mid-May peak of US $198m to US $144m peak today.”
On the altcoin front, most alts suffered outflows last week. Exceptions include Litecoin (LTC) and Uniswap (UNI), which saw inflows of $0.5 million and $0.2 million, respectively.
While Ethereum (ETH) saw $5.9 million in outflows last week, Algorand (ALGO) suffered the biggest losses, according to CoinShares.
“Altcoins, which have been relatively insulated from the recent negative sentiment, also saw outflows last week, most notable were Algorand which saw 65% of AuM outflow last week (US $8m), and Ethereum at US $5.9m.”
XRP products saw inflows of $0.1 million.
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