Sarah Tran
Independent Analyst
- Another week of large institutional outflows has been recorded from crypto investment products.
- Large firms are now selling Bitcoin-related financial products, recording their sixth consecutive weekly decline.
- While institutional investors are the most bearish on the leading crypto, sentiment remains mixed among providers.
Institutions have continued to sell and take profits on cryptocurrencies recently, recording its longest bear run in outflows since early 2018.
Bitcoin takes a hit with the highest bearish sentiment
Cryptocurrency investment products have witnessed a third consecutive week of outflows totaling $79 million, marking the longest bear run recorded since February 2018. In comparison, during the extreme bearish sentiment in 2018, there were seven consecutive weeks of outflows.
While Bitcoin remains the focus of outflows among institutions, funds dedicated to the leading cryptocurrency have seen their sixth consecutive weekly outflows, totaling $89 million.
According to CoinShares, sentiment remains mixed as certain providers see inflows, while others continue to see outflows. The total outflows of Bitcoin-related financial products now total $487 million this year, representing 1.6% of assets under management.
The second-largest cryptocurrency, Ethereum, saw minor outflows of $1.9 million. ETH-related investment products have witnessed less bearish sentiment than Bitcoin as the percentage of assets under management it represents is 0.14%.
Institutions have been hesitant to invest in cryptocurrencies in recent weeks, as digital asset prices have continued to plummet. Bitcoin has struggled to lift prices higher after facing negative headlines over China’s ban on crypto and the recent death cross.
Bitcoin price recently dipped below $33,000, wiping away 50% of its asset value from its all-time high. The market capitalization of all cryptocurrencies also plunged below $1.4 trillion, almost halving last month’s high.
However, not all institutions are bearish on Bitcoin and the crypto market. MicroStrategy has made another round of purchases of the leading digital asset, this time spending around $489 million on 13,005 BTC.
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