Institutional managers continued to take profits on their cryptocurrency holdings, with funds dedicated to Bitcoin (BTC) registering their sixth consecutive weekly outflows, according to CoinShares.
Outflows from digital asset investment products totaled $79 million last week, marking the third consecutive weekly decline and the longest stretch of drawdowns since February 2018. Outflows from Bitcon funds totaled $89 million, whereas Ethereum (ETH) products endured a $1.9 million decline.
Year-to-date, Bitcoin investment products have generated over $4.1 billion in net inflows. Ether products, meanwhile, have accumulated $992 million since the start of 2021.
Multi-asset investment products that hold a basket of cryptocurrencies bucked the downtrend last week by registering $10 million in inflows. These funds have now generated $351 million in inflows this year, data revealed.
Institutional buying of cryptocurrencies has wavered in recent weeks as portfolio managers continue to track a massive decline in asset values. Bitcoin is currently languishing below $33,000, having declined 50% from its May peak. The combined market value of all cryptocurrencies plunged below $1.4 trillion on Monday, virtually halving last month’s high.
While on-chain metrics seem to show favorable signs of a bottom — namely, that Bitcoin is being scooped up by long-term holders at the expense of newer wallets — market sentiment remains overwhelmingly bearish due to negative headlines. China’s ban on Bitcoin mining, an ominous “death cross” for Bitcoin and Grayscale’s giant BTC unlocking in July are just some of the headlines weighing down investor sentiment.