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Institutions Offload Bitcoin Funds Despite The Price Rebound

Institutional investments in Bitcoin and bitcoin-related products continued to steadily decline in the past week in spite of the relieving jump in crypto prices. Bitcoin funds have been in decline as institutional sentiments continue to remain bearish.

It is revealed in the weekly digital asset fund flows report, published on Monday, that bitcoin-related products at institutions have seen a high amount of outflow. This week marks the third weekly report of the decline in Bitcoin funds. $28 million have fallen in crypto space during on Friday the previous week, implying that there has been a 170% rise in the outflows from institutions in contract to the $10.4 million outflows in the past seven days.

The report showcased the outflow rate of the major cryptocurrencies, including Ethereum, and Ethereum-related products due to weak sentiments from institutions and alike. Over the week Ethereum products were met with $7.3 million worth of outflows at the same time as multi-asset funds shook the declining trend with a net inflow amounting to $3.1 million. According to the report, multi-asset funds are currently the only class of crypto investment products that are experiencing a net inflow every week of 2021 for now.

The leading digital asset in the crypto space, Bitcoin along with bitcoin-based products were met with the largest outflows in the crypto space. $24 million or 85% with the collective outflow from crypto products were in decline over the week for Bitcoin-based funds. The statistics show that monthly bitcoin outflows are now up to $49 million, even though the year-to-date flows remain at $4.1 billion, a positive figure.

The weekly report data also indicates that the negative sentiment of intuitions, from last week’s outflow, encompasses the digital asset class despite the bullish remarks from imperative industry figures.

Amid the continuous downturn, one of the leading crypto asset managers, Grayscale has recorded quite a large inflow. It is revealed from the reports that Grayscale was has met with $2.5 million inflows for the period. According to Grayscale’s asset under management bulletin reports, the company’s total AUM is now at $33.6 billion as of Tuesday 27 July.

Overall, the total investment product turnover lingers below $1.7 billion for the week which encompasses merely 22% of the weekly average from May.

The data reports regarding the offloading of cryptocurrency were recorded before the sudden bullish market momentum on Monday 26 July. The accelerated bullish momentum allowed Bitcoin to gain 15% in 3 hours. It has since shown another sign of apparent strength as it is now trading at around the $40k mark.

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