Institutional investors have not yet regained confidence in the cryptocurrency markets, with the weekly crypto investment product volume plunging to its lowest level since October 2021.
Based on CoinShares’ July 12 Digital Asset Fund Flows Weekly report, around $1.58 billion worth of digital asset products exchanged hands between July 5 and July 9. The sophisticated investors seem to be spreading their risk across the crypto industry, with multi-asset products beating out ETH and BTC by inflows.
Cryptocurrency investment products also recorded outflows of $4 million for the week, with nearly $7 million exiting bitcoin (BTC)- tracking products. Nonetheless, European Bitcoin products saw inflows in general, suggesting that some of the investors think the worst of 2021’s bear market might be over.
Ethereum (ETH) products also experienced minor inflows of $800,000 for the week.
CoinShare’s latest data suggests that institutional investors are sitting on the fence after the past week’s short bullish recovery that recorded $63 million injected into ETH and BTC products cumulatively.
Institutional Bitcoin products have now recorded outflows for 8 of the past 9 weeks. The institutions also offloaded Ether exposure last month, with outflows that reach $64.3 million since the week that ended on June 6.
Despite the investors being cautious on ETH and BTC, CoinShares says that multi-asset products have continued to experience inflows as the institutions spread their risk across the industry, posting some inflows of $1.2 million.
Multi-asset products have experienced year-to-date (YTD) inflows of $362 million, and now represent around 16.5% of assets under management (AUM) of multi-asset funds. CoinShares wrote:
“While the inflows remain relatively small in comparison to Bitcoin and Ethereum, the data does imply that investors are increasingly looking to diversify their digital asset holdings.”
The investors also showed some interest in Cardano, with inflows reaching $600,000 in the past week. Despite the latest regulatory scrutiny targeting Binance, Binance Coin products recorded inflows of $400,000.