Record $3.8 Billion Flows out of Institutional Crypto Products in One Week: CoinShares
In a shocking turn of events, crypto asset management giant CoinShares has revealed that institutional whales pulled an astonishing $3.8 billion out of crypto investment vehicles last week. According to the latest Digital Asset Fund Flows Weekly Report from CoinShares, this marks the largest weekly outflows on record, with a total of $2.9 billion in withdrawals.
These outflows come amidst a third consecutive week of negative sentiment for digital asset investment products, with institutional investors seemingly taking a cautious approach to their crypto portfolios. CoinShares attributes this trend to several factors, including the recent Bybit hack, a more hawkish Federal Reserve, and the preceding 19-week inflow streak totaling $29 billion.
"We believe that these elements led to a mix of profit-taking and weakened sentiment toward the asset class," said an official from CoinShares. "The negative sentiment towards digital assets seems to be gaining momentum, with investors becoming increasingly risk-averse."
Regional Breakdown: Where Did the Outflows Come From?
The US was the region that led in outflows, accounting for $2.87 billion of the total withdrawals. Switzerland and Canada followed at $73 million and $16.9 million respectively, while Germany bucked the trend by adding $55.3 million in inflows.
Bitcoin (BTC) took the worst hit, losing $2.6 billion in outflows, while Ethereum did not escape the negative sentiment either, seeing a record weekly outflow totaling $300 million. Solana and Ton also suffered from outflows of $7.4 million and $22.6 million respectively.
Altcoins Get a Break
However, not all altcoins were hit by the outflows. Sui (SUI), XRP, and Litecoin (LTC) enjoyed inflows of $15.5 million, $5 million, and $1 million respectively. While these gains are relatively modest compared to the overall trend, they do suggest that some investors may be taking a more cautious approach to altcoin investments.
Disclaimer
"Opinions expressed at The Daily Hodl are not investment advice," cautions CoinShares in their report. "Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets." The article also warns that transfers and trades are at the investor's own risk, and that any losses incurred are their responsibility.
"The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor," adds CoinShares. "Please note that The Daily Hodl participates in affiliate marketing."