Over the past week, investment in institutional Bitcoin products has continued to decline.
On its July 26 Digital asset capital flow ReportCoinShares pointed out that there was an outflow of funds from institutional crypto products for the third consecutive week. As of the week of July 23, 28 million U.S. dollars exited the industry. As a result, the outflow of funds this week has increased by 170% compared to the 10.4 million US dollars in the previous 7 days.
The survey results showed that Bitcoin-based funds had the largest outflow, at 24 million U.S. dollars, accounting for 85% of the total outflow of crypto products. The monthly outflow of BTC is now US$49 million, but the year-to-date flow is still positive at US$4.1 billion. CoinShares stated:
“Last week’s capital outflow showed that despite the more constructive comments from major industry players recently, negative sentiment is still prevalent in asset classes.”
Ether products are also outflow The net inflow this week was US$7.3 million, while multi-asset funds bucked the trend, with a total net inflow of US$3.1 million. The report added that, so far, multi-asset funds are the only type of crypto investment product that has a net inflow every week in 2021.
Despite the economic downturn, the leading crypto asset management company Grayscale still recorded an inflow of US$2.5 million during this period. Its latest asset management announcement shows that as of July 27, total assets under management were 33.6 billion U.S. dollars.
CoinShares concluded that the turnover of investment products this week is still at a low of $1.7 billion-only 22% of the weekly average in May.
However, the CoinShares data was recorded before the bullish market action that saw Bitcoin rise on Monday 15% in less than three hours.