Institutions cautious as crypto products show lowest volume since October

[ad_1]

Institutional investors have yet to regain confidence in the crypto markets, with the weekly volume of crypto investment products falling to its lowest level since October 2020.

According to CoinShares’ weekly digital asset fund flow report of July 12, digital asset products worth $ 1.58 billion changed hands between July 5 and 9.

Crypto investing products also saw outflows of $ 4 million for the week, with around $ 7 million in Bitcoin Tracking (BTC) product outflows. However, European Bitcoin products have seen inflows overall, suggesting some investors believe the worst bear market of 2021 may be behind us.

Ethereum products (ETH) also registered minor entries of $ 800,000 for the week.

Capital flows for institutional crypto products: CoinShares

The latest data from CoinShares suggests institutional investors are sitting on the close after the brief bullish rally in previous weeks that saw $ 63 million injected into BTC and ETH products combined.

Institutional Bitcoin products have now posted exits for 8 of the past 9 weeks. Sophisticated investors also offloaded the ether exposure last month, with exits totaling $ 64.3 million since the week ending June 6.

Related: Bitcoin Price Falls Below $ 33,000, But On-Chain Data Hints At BTC Build Up

Although investors appeared cautious on BTC and ETH, CoinShares notes that multi-asset products continued to see entries as institutions spread their risk across the sector, posting entries of $ 1.2 million.

Multi-asset products recorded cumulative inflows (YTD) of $ 362 million and now represent 16.5% of assets under management (AUM) of multi-asset funds. CoinShares wrote:

While inflows remain relatively low compared to Bitcoin and Ethereum, the data implies that investors are increasingly looking to diversify their digital assets.

Investors have also shown interest in Cardano, with entries totaling $ 600,000 last week. Despite the recent regulatory review of Binance, Binance Coin products saw inflows of $ 400,000.

[ad_2]