Bitcoin News: Institutional investors withdrew a record $141 million from Bitcoin investment products last week. The latest report from analytics firm CoinShares shows that exits from institutional BTC investment products continue to increase. According to CoinShares’ June 7 Digital Asset Fund Flows Weekly report, institutional investors continue to reduce their Bitcoin holdings, and BTC investment products saw a record $141 million outflow last week.
The data follows heavy institutional selling amid the dramatic crypto market crash in May. Institutions withdrew nearly $100 million from crypto products between May 10 and May 16, before exits slowed towards the end of last month.
Trading volume for BTC products is also falling sharply, with trading activity down 62% in the first week of June compared to May’s weekly average. CoinShares points out that institutional sentiment towards BTC has been on the decline since early May, emphasizing that even so, the exits represent less than a tenth of the entries in 2021:
“Exits represent 8.3% of net inflows seen this year and are minimal compared to exits seen in early 2018.”
Escape from Bitcoin?
Since the start of 2021, more than $4.2 billion has flowed into Bitcoin products, representing 65.9% of all available capital in crypto investment products. Declining institutional demand for BTC has again coincided with increased institutional appetite for Ethereum. Ether now represents over 26.8% of combined assets under management (AUM) after receiving $33 million in inflows last week.
CoinShares also noted that investors are interested in Ripple (XRP) and Cardano (ADA) investment products, with XRP’s total inflows tagging $7 million – its biggest weekly entry since April – and ADA’s entries of $4.5 million. According to data from CoinGecko, Ether continues to overtake Bitcoin as the most traded, unstable crypto asset in the broader crypto markets.
Nearly $37.4 billion worth of Ether has changed hands in the last 24 hours. This amount is second only to stablecoin Tether’s daily trading of $75.5 billion. By comparison, Bitcoin traded $32.9 billion in 24-hour trading volume.