5th Week Of Outflows From Institutional Crypto Funds: CoinShares
Institutional investors are getting cold feet about cryptocurrency, and funds have been losing money for another week in a row.
The CoinShares Digital Asset Fund Flows weekly report for the week ending May 22 showed that $32 million left the fund. Institutional crypto asset funds have lost money for the fifth week in a row, and the total loss has hit $232 million.
But the number of people leaving was less than in the previous three weeks.
The most negative feeling was shown by the $33 million that left Bitcoin funds. CoinShares revealed that only $1 million was taken out of Ethereum funds.
The news said that the volume for the week was $900 million, which is 40% less than the average for this year. On centralised markets, the same thing was happening:
“Volumes for the broader market on trusted exchanges hit their lowest level since late-2020 at $20 billion for the week.”
European Investors Cooling on Crypto
In terms of where the money left the country, 73% of the total, or $24 million, came from Germany. Institutional funds in Switzerland also saw outflows of $3.3 million. The crypto flight happened during the same week that the MiCA crypto law was passed in Europe.
During the week, $5.5 million left U.S. funds, but $2.2 million came into cryptocurrency-friendly Canada. Brazil also got $1.3 million in small amounts.
Short Bitcoin funds also had a small loss of $1.3 million over the course of the week, which made CoinShares wonder why:
“It’s not clear why people are so negative about both long-term and short-term investments at the same time.”
Multi-asset altcoin funds got $1.6 million in new money, and Litecoin, XRP, and Avalanche funds got less money.
Even though institutional buyers don’t like Bitcoin, BTC hodling has become the main market story, according to Glassnode. The data company said in its weekly on-chain report:
“What we continue to observe is that the conviction of existing Bitcoin holders remains remarkably high, despite the extreme volatility and immense deleveraging over the last two years.”
Crypto Market Outlook
With a 2.7% rise on the day, the digital asset markets are still consolidating. This keeps them in a narrow range. Total value is back up to $1.19 trillion, which is the same level as two weeks ago.
Bitcoin has gone up by 2.5% to $27,400, but there is support just above it at $27,600. At the time of writing, Ethereum has gone up 3.2% to $1,860. To break out of its sideways range, ETH needs to go above $1,900.
