CoinShares’ report noted that Bitcoin outflows rose last week, while trading volume for spot BTC ETFs totaled $11.8 billion.
The latest report from European cryptocurrency investment firm CoinShares shows that there were minor outflows from institutional Bitcoin $40,638 investment products over the past 7 days.
According to CoinShares’ “Digital Asset Fund Flows Weekly” report published on Jan. 22, institutional investors are reducing Bitcoin exposure, with BTC investment products seeing total outflows of $24.7 million this past week.
The data follows heavy selling amid spot Bitcoin ETF-driven crypto market meltdown, with institutions having withdrawn nearly $21 million from crypto products between Jan. 11 and May 19 before outflows briefly slowed toward the end of last week.
🔴 Digital asset investment saw minor outflows last week, totalling US$21m.
— CoinShares (@CoinSharesCo) January 22, 2024
📈 Trading volumes in #Bitcoin are very high, totalling US$11.8bn.
– Issuer dynamics –
Higher cost issuers: US$2.9bn outflows
Newly issued ETFs: US$4.13bn inflows (since launch)
Net inflows into US ETFs… pic.twitter.com/sYZAD2hRfB
Despite digital asset investment products witnessing minor outflows last week, CoinShares highlighted incumbent higher-cost spot issuers in the United States saw massive outflows to the advantage of new issuers.
“Investors saw recent price weakness as an opportunity to add to short-Bitcoin investment products, seeing U.S. $13m inflows,” the CoinShares report added.
The declining institutional demand for BTC coincided with decreasing institutional appetites for Ether after Ether ETH $2,369 witnessed outflows of $13.6 million this past week.
This data from CoinShares highlights the impacts of spot Bitcoin ETFs on the cryptocurrency sector, with the total market cap dropping 3.4% over the last 24 hours to $1.59 trillion.