Institutional Investors Withdraw $1.94 Billion from Crypto Funds
Institutional investors withdrew $1.94 billion from crypto funds in a week, marking the third-largest outflow since 2018, according to CoinShares data.
Institutional investors have been pulling out of cryptocurrency funds at an alarming rate, with the latest data from CoinShares revealing a total of $1.94 billion in outflows over the past week. This marks the third-largest outflow since 2018 and the fourth consecutive week of withdrawals, totaling $4.92 billion.
Crypto Funds Record Four Straight Weeks of Outflows
CoinShares’ data shows that Bitcoin and Ethereum have been the hardest hit, with outflows accounting for 2.9% of total assets under management. Despite this, year-to-date inflows remain positive at $44.4 billion. Notably, XRP recorded $89.3 million in inflows, bucking the broader negative trend.
The outflows have been significant, with Bitcoin leading the way at $1.27 billion, followed by Ethereum at $589 million, and Solana at $156 million. The withdrawals have resulted in a 36% decline in assets under management, combined with price declines.
Selling Pressure Leads to Bitcoin Sell-Off
Selling pressure eased on Friday after seven consecutive days of outflows saw $258 million in inflows, with Bitcoin accounting for $225 million and Ethereum accounting for $57.5 million. Despite recent outflows, the cryptocurrency market remains volatile, with investors continuing to navigate the uncertainty.
According to CoinShares, the outflows are a result of selling pressure, which has led to a Bitcoin sell-off. The company’s data suggests that investors are becoming increasingly cautious, with the recent outflows being the third-largest since 2018.
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