• CoinShares reports that institutional investors are experiencing negative sentiment in the market with BTC and altcoins seeing outflows for the sixth week in a row.
• BTC was the main asset to suffer outflows, totaling $11 million. Short Bitcoin products also saw outflows of $11 million.
• Altcoins also suffered outflows, most notably Algorand which saw 65% of its assets under management leave last week. XRP products had minor inflows of $0.1 million.
Negative Crypto Sentiment
CoinShares reports that institutional investors are experiencing negative sentiment in the market with Bitcoin (BTC) and altcoins witnessing sell-offs for the sixth week in a row, resulting in a total outflow of $39 million from digital asset investment products. Trading volumes remain low at 58% of this year’s average and 38% across the broader digital asset space.
The focus remains on Bitcoin as it experienced an outflow totaling $11 million while short-Bitcoin products saw an additional outflow totaling $11 million over six weeks, representing 36% of total assets under management (AuM). Total AuM has fallen from its mid-May peak of US$198m to US$144m today.
Altcoins have been relatively insulated from recent negative sentiment but still saw outflows last week, most notable being Algorand which witnessed 65% of AuM leaving last week ($8m), followed by Ethereum at US$5.9m leaving last week as well. Exceptions include Litecoin (LTC) and Uniswap (UNI) which both received minor inflows amounting to $0.5 million and $0.2 million respectively while XRP products had minor inflows of $0.1 million each week..
Institutional investors are weathering negative sentiment on the market as Bitcoin and altcoins experience major sell-offs for six consecutive weeks resulting in a total loss of $272m or 0.8%of total AUM according to CoinShare’s Digital Asset Fund Flows Weekly Report .
In conclusion, institutional investors are feeling the effects of crypto markets suffering from sell-offs as BTC takes most losses while altcoins including Ethereum follow shortly behind with their own losses along with some exceptions such as Litecoin and Uniswap being met with small inflows each week while XRP experiences minimal gains each time as well