Record $141M outflow from Bitcoin products signals institutions are bearish on BTC: CoinShares


The latest report from analytics firm CoinShares shows that outflows from institutional BTC investment products continue to surge.

According to CoinShares’ June 7 Digital Asset Fund Flows Weekly report, institutional investors are continuing to reduce Bitcoin exposure, with BTC investment products seeing a record outflow of $141 million this past week.

Capital flows for crypto investment products: CoinShares

The data follows heavy institutional selling amid May’s dramatic crypto market meltdown, with institutions having withdrawn nearly $100 million from crypto products between May 10 and May 16, before outflows briefly slowed towards the end of last month.

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Trade volume for BTC products is also sharply declining, with the first week of June seeing a 62% drop in trade activity compared to May’s weekly average.

Despite describing institutional sentiment towards BTC as having turned bearish since early May, CoinShares highlighted the outflows represent less than one-tenth of 2021’s inflows:

“The outflows represent 8.3% of the net inflows seen this year and remain minimal on relative terms to the outflows seen in early 2018.”

Since the start of 2021, more than $4.2 billion in capital has flowed into Bitcoin products, with BTC current representing 65.9% of all capital locked in crypto investment products.

The declining institutional demand for BTC has again coincided with increasing institutional appetites for Ethereum — with Ether representing more than 26.8% of the combined assets under management (AUM) currently locked in crypto investment products after receiving inflows of $33 million this past week.

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CoinShares also noted investors are seeking exposure to Ripple (XRP) and Cardano (ADA) investment products are attracting interest, with XRP’s inflows totaling $7 million — its largest weekly inflow since April — and ADA’s inflows tagging $4.5 million.

According to data from CoinGecko, Ether continues to have usurped Bitcoin’s status as the most-traded non-stablecoin crypto asset in the broader crypto markets.

Roughly $37.4 billion worth of Ether traded hands over the past 24 hours — second only to stablecoin Tether’s $75.5 billion in daily trade. By comparison, Bitcoin has processed $32.9 billion in 24-hour trade volume.

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Author: Brian Quarmby

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