Market analysis over the weekend confirmed that institutional investors continued to heavily offload their Bitcoin investments despite the flagship crypto recording significant gains.
According to a “Digital Assets Fund Flows Weekly” report published on July 26, Coinshares stated that institutional crypto products experienced heavy outflows for the third consecutive week. The past week saw an increase of 170% in outflows following nearly $28 million exiting the sector compared with $10.4 million for the previous seven days.
The analysis further revealed that Bitcoin-based funds saw massive outflows, amounting to $24 million, representing 85% of combined outflows from crypto products. As of Friday last week, the total monthly outflows stood at $49 million, with year-to-date flows standing at $4.1 billion. While commenting on the analysis report, Coinshares stated:
“Last week’s outflows suggest negative sentiment still pervades the asset class despite more recent constructive comments from key industry players.”
On the other hand, Ether (ETH) products also saw outflows of $7.3 million over the same period. Interestingly, multi-assets funds saw a positive trend, with a net inflow totaling $3.1 million. The report asserted that multi-asset funds are the only class of crypto investment products that have experienced net inflows every week so far in 2021.
However, despite the past week’s downturn, Grayscale, a leading crypto asset manager, saw an inflow amounting to $2.5 million. Surprisingly, according to Grayscale assets under management bulletin reports on July 27, its total AUM stands at $33.3 billion.
Coinshares ended its bulletin noting that investment products turnover remained relatively bearish at $1.7 billion over the past week, which constitutes just 22% of May’s weekly average.
Nonetheless, the Coinshares data report did not capture the July 26-28 bullish market action that saw Bitcoin gaining 15% in less than three hours.