Institutional investors have pulled a substantial $584 million from digital asset investment products over the past week, marking the second consecutive week of significant outflows.
According to CoinShares’ latest report, the United States witnessed the largest outflows, totaling $475 million, while Canada, Germany, and Hong Kong also experienced notable withdrawals.
Bitcoin and Ethereum, the market’s leading cryptocurrencies, bore the brunt of the investor retreat, with outflows totaling over $688 million. Bitcoin alone saw $630 million in exit investment products, reflecting cautious sentiment despite a lack of increased short positions. Ethereum followed with $58 million in outflows, underscoring the broader bearish outlook among investors.
Despite the overall market downturn, select altcoins attracted attention from institutional investors seeking opportunities amid the price corrections. Solana, Litecoin, and Polygon emerged as notable beneficiaries, recording inflows of $2.7 million, $1.3 million, and $1 million, respectively.
The significant outflows from Bitcoin and Ethereum products coincided with the lowest trading volumes recorded in digital asset investment products since the introduction of US ETFs earlier this year. Total weekly volumes plummeted to just $6.9 billion, signaling a cautious approach among investors amidst market volatility and regulatory uncertainties.
In contrast to the outflows witnessed in single-asset products, multi-asset investment vehicles attracted $98 million in inflows. This suggests that some investors are bullish and perceive the current market weakness, especially in altcoins as a good entry point to invest.
Also read: Donald Trump to Speak at the Upcoming Bitcoin 2024 Event
