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Crypto Funds Mark 3rd Consecutive Weeks Of Outflows With $435 Million In Withdrawals

Crypto investment products are now going through rough times, as shown by inflow and outflow data. The crypto market is known for its volatile market cycles of ups and downs. Investment products are now struggling, and confidence in the space seems shaken. Crypto funds have now seen outflows for three straight weeks, with investors pulling $435 million from digital asset funds last week, according to CoinShares data. The recent stretch of outflows highlights the souring investor sentiment around some digital assets after a bull run earlier this year.

The Third Consecutive Week Of Crypto Withdrawals

CoinShares’ recent weekly report on digital asset fund flows has revealed the current sentiment among institutional investors. According to the report, investment funds witnessed $435 million in outflows last week to mark the biggest outflow since March. This comes on top of the $206 million and $126 million pulled out in the previous two weeks. Unsurprisingly, the majority of outflows came from Bitcoin funds. Of the total $435 million outflows, $423 million came from Bitcoin funds. Notably, a bulk of Bitcoin’s outflows ($328 million) came from Spot Bitcoin exchange-traded funds (ETFs) in the US.

A look into previous crypto fund flow data since the beginning of the year shows that the majority of the inflows recorded in January, February, and March can be attributed to the Spot Bitcoin ETFs. These ETFs recorded so much inflow of funds that investment products were able to record their best year on record in less than three months. 

However, inflows into these ETFs have declined in the past few weeks, and the largest digital asset is now failing to attract inflows amidst interest rate stagnation in the US market. Grayscale’s GBTC, in particular, continued its run of withdrawals, recording $440 million in outflows. At the same time, the other ETFs failed to attract inflows during the week in order to offset these withdrawals. BlackRock’s IBIT, for instance, failed to register inflows for three days straight last week, bringing its 71-day run of inflows to an end. 

Ethereum, the altcoin king, also witnessed $38.4 million in outflows last week to offset inflows into other altcoins. Inflow data shows investors pouring $6.9 million worth of inflows into multi-coin investment products. Solana, Litecoin, XRP, Cardano, and Polkadot witnessed $4.1 million, $3.1 million, $0.4 million, $0.4 million, and $0.5 million in inflows, respectively. Short Bitcoin products also witnessed $1.3 million in inflows, showcasing a glimpse into investors’ sentiment.

What’s Next?

Investor sentiment can shift quickly in the fast-moving crypto space and the coming weeks may provide more clarity on the direction of crypto fund flows. Six Spot Bitcoin and Ether exchange-traded funds (ETFs) are set to launch in Hong Kong today April 30. Their entry into the Asian market has been long anticipated and is expected to surpass the first-day inflow record set by their counterparts in the US.

Crypto total market cap from Tradingview.com

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Buying Opportunity: Crypto Institutional Investors Pump $862 Million Into The Market

Crypto investment products are up again in terms of inflows, giving the crypto industry a much-needed breather. Recent market dynamics have seen Bitcoin leading the surge of inflows into crypto investment products, signaling a possible resumption of bullish sentiment.

James Butterfill, head of research at Coinshares, reported this inflow in a social media post. The statistics indicate that crypto investment products received inflows of $862 million over the timeframe spanning from March 23 to March 29 to reverse the record net outflows of $942 million set in the prior week. Unsurprisingly, most of the inflow went into Bitcoin, hinting at a potential buying opportunity for investors still waiting to get in on the asset during this bull run.

Institutional Investors Pump $862 Million Into Crypto Market

James Butterfill termed the inflow registered last week as a “recovery for ETFs.” This is rightly so, as these US-based Spot Bitcoin ETFs gave investors a scare in the prior week with lackluster inflow, hinting at the possibility that the bull run could be coming to an end. This led to crypto investment products bleeding for the first time after seven consecutive weeks of inflows. 

However, it would seem the sentiment regarding Spot Bitcoin ETFs is now back to a very bullish outlook. As a result, Bitcoin registered $865 million in inflows to bring its year-to-date inflow to $12.83 billion. On the other hand, Ethereum and multi-asset products registered $18.9 million and $2.6 million in outflows, respectively, to offset some of the inflows registered by Bitcoin. 

Inflows of $6.1 million, $0.2 million, $0.3 million, $1.1 million, and $2.4 million were recorded for Solana, Litecoin, XRP, and Polkadot, respectively. Polkadot also registered an inflow of $2.4 million. Short Bitcoin products, on the other hand, witnessed outflows of $2 million. 

Crypto inflows

Buying Opportunity For Bitcoin?

Bitcoin’s price surge for the past few months has largely been due to action surrounding Spot Bitcoin ETFs. Interestingly, last week’s inflow activity saw Bitcoin breaking into the $70,000 price territory multiple times last week. This bullish momentum wasn’t sustained, allowing the bears to create a resistance at around $71,000.

Nevertheless, the inflow indicates something bullish might be brewing behind the scenes. Fundamentals surrounding the crypto point to a bullish price action throughout April, particularly as the next halving approaches.

Bitcoin went through bearish price action over the weekend, correcting by almost 7% from $71,285. At the time of writing, Bitcoin has broken below a support at $68,500 and is now trading at $66,510. According to Santiment, the price dip has given crypto traders a sense of buying opportunity with calls of “buy and bullish” spiking across social media.

Crypto total market cap chart from Tradingview.com

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Crypto Outflows Reach New Record High, Will The Bitcoin Decline Continue?

Crypto investment products have finally registered a week of outflows after seven weeks of consecutive strong inflows and two weeks of breaking records after records. In fact, data has shown that these investment products have now set a new record for the most outflows in a week, extending the run of record creation.

According to data from CoinShares, investors pulled out $942 million from crypto investment products last week to wipe $10 billion off total assets under management (AuM). Interestingly, a larger part of this outflow came from Bitcoin, as Spot Bitcoin ETFs in the US registered outflows every day. 

Crypto Outflows Reach New Record High

CoinShares’ weekly report on digital investment funds has revealed crypto investment products have been witnessing an influx of money for the past two months. Consequently, these products registered a seven-week run of inflows totaling $12.3 billion. Bitcoin, the largest cryptocurrency, received most of these inflows, which helped push its price to a new all-time high.

However, last week told a different tale for Bitcoin’s investment products, as Spot Bitcoin ETFs in the US registered a weak $1.1 billion in inflows which was unable to offset Grayscale’s significant $2 billion outflows. As a result, Bitcoin investment products witnessed outflows of $904 million throughout last week. Short Bitcoin products also witnessed minor outflows of $3.7 million.

The negative sentiment flowed to other investment products such as Ethereum, Solana, Cardano, and multi-asset products witnessed outflows of $34.2 million, $5.6 million, $3.7 million, and $7.3 million, respectively. On the other hand, Litecoin, XRP, and Polkadot saw an increase in their respective inflows of $2 million, $1.2 million, and $5 million. Lastly, the total trading volume fell to $28 billion, two-thirds of the prior week. 

In terms of region, the USA had the most outflows of $860 million. Sweden and Switzerland followed with $36.9 million and $25.2 million respectively. According to CoinShares, the reversal into a poor sentiment was largely due to hesitancy from investors.

What’s Next For Bitcoin?

Interestingly, last week’s outflow from Spot Bitcoin ETFs coincided with a drastic drop in the price of Bitcoin with the cryptocurrency falling to as low as $61,370. This shows how much influence these funds now have over the price of Bitcoin. Last week’s actions show investors seem to be hitting pause on their enthusiasm for spot bitcoin ETFs. Whether that pause lasts for weeks or longer remains to be seen.

However, sentiment can shift quickly in the cryptocurrency market and recent price action shows the industry might be returning to bullish mode. According to data from BitMEX Research, Spot Bitcoin ETFs registered a day of net inflows yesterday. Net inflow recorded was $15.7 million, the lowest inflow day since January 26.

Bulls have now taken over to push the price of Bitcoin by 5.38% in the past 24 hours. At the time of writing, Bitcoin is trading at $70,676 and could reach $73,000 again very soon.

Bitcoin price chart from Tradingview.com

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Crypto Institutional Investors Are Frontrunning Retail As Inflows Reach Record Highs

Crypto investment products continue to shine in the middle of a strong bullish market sentiment. New data has shown institutional investors and traders are now going full speed on crypto investment products, allowing inflows to attain a new inflow record. According to CoinShares, a digital asset investment firm, digital investment products registered a record weekly inflow of $2.7 billion last week, pushing the year-to-date inflow near a new record.

Crypto Institutional Investors Continue To Aim Higher

The crypto market has attracted its fair share of rich visionaries and institutional traders over the years, with most just dabbling in and out. Recent market factors, however, have opened the industry and made it palatable to big traders. As a result, trading volume from this cohort of investors has ballooned to new highs.

In its latest weekly report, CoinShares noted that investment products based on cryptocurrencies reached a new milestone of $2.7 billion inflow last week, bringing the run to six consecutive weeks of inflows. Hence, the total inflow year-to-date is now at $10.3 billion, just $300 million shy of the $10.6 billion inflows recorded in 2021.

To put this into perspective, we’re less than three months into 2024, and inflows are already on par with those recorded throughout the bullish cycle in 2021.  At the same time, trading volume reached a new record of $43 billion for the week, smashing the $30 billion record set in the previous week.

Unsurprisingly, most of this activity can be credited to Bitcoin, with the majority of inflow going into the cryptocurrency. According to CoinShares, Bitcoin remained the focus of investors to attract $2.6 billion in inflows last week, representing 96% of the total inflow. This comes despite a $1.65 billion outflow from Grayscale’s Spot Bitcoin ETF.

Speaking of Spot Bitcoin ETFs, there’s no denying the fact that these investment vehicles have been the primary catalyst for Bitcoin’s recent growth. This has allowed Bitcoin to break over various price resistance to reach new all-time highs. Last week, the 10 ETFs in the US ended the week at a net inflow of $2.238 billion, with BlackRock and Fidelity leading the charge. Despite recent price rises, short Bitcoin products also recorded $11 million in inflows last week.

On the other hand, Ethereum investment products witnessed an outflow of $2.1 million last week to reverse $84.7 million inflows recorded in the prior week. This is despite Ethereum crossing over the $4,000 price level for the first time in two years. The reverse case is for Solana, which witnessed $24 million inflows after an outflow of $11.9 million in the previous week. 

Polkadot, Fantom, Chainlink, and Uniswap also saw inflows of $2.7 million, $2 million, $2 million, and $1.6 million, respectively.

Crypto total market cap chart from Tradingview.com

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Institutions Can’t Get Enough Of Crypto As Trading Volumes Hit New $30 Billion Record

Inflows into crypto investment products have ballooned in the past few weeks to reach a record trading volume last week. According to CoinShares, digital asset investment products received inflows of $1.84 billion last week, the second-highest on record. Particularly noteworthy is that the inflow into crypto funds caused trading volume to cross over a weekly volume of $30 billion for the first time.

Institutions Rush To Crypto

Weekly trading volume in investment products has now displaced its 2021 record to cross over $30 billion. The timing is not a coincidence, as most cryptocurrencies are currently on the backs of bullish price action for the past few weeks.

Recent market dynamics have seen institutions and large traders rushing into crypto assets, most especially Bitcoin. Consequently, this cohort has become a large part of the crypto industry, contributing highly to a surge in trading volume across the board. 

As expected, the majority of inflows and trading volume was centered around Bitcoin. Bitcoin remains the most popular digital asset for institutions, and interest has really piqued since Spot Bitcoin ETFs went live in the US. Last week, the weekly trading volume for Spot Bitcoin ETFs alone crossed a record $22.3 billion. The ETFs ended the week at a net inflow of $1.72 billion, despite an outflow of $1.45 billion from Grayscale’s ETF.

According to CoinShares, around $1.73 billion, representing 94% of the total inflow into investment products, went into Bitcoin last week. The company also noted that investment products at times represented 50% of global Bitcoin daily trading volumes on exchanges. 

Ethereum led the altcoin market with a net inflow of $84.7 million, bringing its total net inflow this year to $137 million. This is Ethereum’s largest weekly inflow since mid-July 2022. However, its current $14.6 billion worth of assets under management is 38% below its all-time high of $23.7 billion.

XRP, Chainlink, and Litecoin registered inflows of $2.5 million, $1.6 million, and $1.2 million, respectively. Short investors also poured $22 million inflows into short-Bitcoin investment products.

On the other hand, Solana registered an outflow of $11.9 million last week. Its year-to-date flow has yet to turn positive, as it has been $14 million in outflows since the beginning of the year. Multi-asset products also saw outflows of $0.3 million. 

In terms of geographical location, the USA had the most inflows with $1.88 billion, Switzerland with $19.6 million, Australia with $3.7 million, and Brazil with $2.7 million. On the other hand, Canada, Germany, and Sweden had net outflows of $23.1 million, $34.8 million, and $31.6 million, respectively. 

Crypto total market cap chart from Tradingview.com

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The Crypto Bulls Are Back: Digital Asset Inflows Cross $103 Million In One Week

Inflows into crypto investment funds have resumed after a brief hiatus two weeks ago, as evidenced by CoinShares’s latest analysis. According to James Butterfill, Head of Research at CoinShares, digital assets saw a net inflow of $103 million last week, as the wider crypto industry went through a few days of bullish sentiment. This is particularly exciting, as it signaled a change from the net outflows in digital asset investment funds witnessed two weeks ago. 

Crypto Fund Inflows Surge To $103 Million

Crypto asset investment funds witnessed a minor net outflow of $16 million two weeks ago, bringing an end to 11 consecutive weeks of inflows since September. However, according to a social media post by Butterfill, these investment funds attracted a $103 million net inflow last week. As expected, Bitcoin, again, led the charge, attracting 85% of the total inflow. Bitcoin saw an inflow of $87 million last week, bringing its total net inflow this year to $1.758 billion. 

Ethereum led the altcoin market with a net inflow of $7.9 million, bringing its total net inflow this year to $23 million. Solana followed suit with a $6 million net inflow. At the time of writing, Solana’s total inflow this year stands at $162 million, reflecting the better sentiment Solana has seen with institutional investors this year. 

On the other hand, Litecoin and Avalanche investment products were the only ones registering a net outflow during the week, with $0.4 million and $2.6 million respectively.

In terms of geographical location, Germany had the most inflows with $41.6 million, Canada with $25.8 million, USA with $20.4 million, and Switzerland with $15 million. On the other hand, Sweden had a net outflow of $8.7 million. 

Total assets under management now stand at $52 billion, representing 31% of the entire crypto market cap of $1.65 trillion. Most of this is traded in the United States, with US-based investment funds holding $37.8 billion worth of assets under management.

Crypto total market cap chart from Tradingview.com

State Of The Market

Investment in digital asset funds is largely tied to the sentiment among the spot market prices. As a result, the net inflows last week were a mirror of the price surge led by Bitcoin, with the crypto crossing over $44,000 multiple times during the week. Bitcoin has since corrected and is now trading at $42,390.

Ethereum’s lead in the altcoin market has been overshadowed by Solana since October. The crypto is up by 53% in a 7-day timeframe, hitting a yearly high of $124.92 on Christmas day. At the time of writing, Solana is trading at $114.  

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The Bulls Are Back: Crypto Institutional Inflows Balloon To 2021 Levels

Crypto investment products have experienced another week of inflows, bringing the run to 10 consecutive weeks. According to CoinShares’ latest report on digital asset investment funds, inflows into crypto products totaled $176 million last week, bringing the total inflow in 10 weeks to $1.76 billion. The timing is not a coincidence, as most cryptocurrencies turned green again last week in terms of price action.

Total Crypto Inflows Hit $1.76 Billion In 10 Weeks

After a lackluster action for most of the year and some weeks of net outflows, the most recent data shows smart money investors are betting big on crypto again. Investments in digital asset funds have been on the rise for the past two months, ignited by the crypto market bull run which started in the middle of October. As a result, the inflows have ballooned every week, breaking levels not seen since 2021’s crypto market bull run. 

Digital asset investment funds ended November with an inflow of $176 million, although down from the $346 million registered in the week before. Most of the money last week went into Bitcoin, with the cryptocurrency seeing $133 million in inflows. 

Bitcoin remains the most popular digital asset for institutions, and interest has really piqued with the applications of spot Bitcoin ETFs in the US waiting for approval from regulators. As a result, the crypto has strengthened since October, breaking various price levels and resistances, the latest being the $42,000 price level.

The sentiment has also flowed into the altcoin market. Ethereum saw inflows of $31 million last week, bringing its 5-week inflow run to a total of $134 million. Multi-asset investment products that provide exposure to a basket of crypto assets saw $2.3 million in new investment. 

Crypto total market cap chart from Tradingview.com (Institutional investors)

Solana and XRP saw inflows of $4.3 million and $0.5 million respectively. On the other hand, Litecoin saw outflows of $0.2 million, and Short Bitcoin products saw $3.6 million inflows after three consecutive weeks of outflows. 

Most of the inflows came in from Canada, Germany, and the US, which saw inflows of $79 million, $57 million, and $54 million respectively. Australia and Sweden also saw outflows of $0.5 million and $0.2 million respectively. However, the overall trend shows institutions are still bullish on crypto in the long run.

It’s exciting to see such numbers again, as they are reminiscent of past bullish sentiment in the crypto industry. According to CoinShares, this run of inflows is now the largest since October 2021, which saw the launch of the futures-based ETF in the US. 

Assets under management have also risen by 107% this year and are now at $46.2 billion, but still below the $86.6 billion seen in 2021. However, this record is ready to be overtaken in the coming year, as the latest data provides further evidence that institutional interest in the crypto market will continue for a while.

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Here’s What Bitcoin Institutional Inflows Says About The Month Of July

The price of bitcoin has had an eventful start to the month of August, and it doesn’t look like it will be stopping anytime soon. Mostly, it is the residual effects of what happened in the markets during the month of July, where the price of bitcoin had actually broken above $24,000. In the same vein, the institutional inflows have a lot to say about bitcoin, especially when it comes to how big money is looking at the digital asset.

Bitcoin Inflows Grow Strong

Bitcoin inflows for the month of July had actually maintained a steady uptrend. The digital asset was able to receive another $85 million worth of inflows for the last week of July, mostly for long bitcoin. At the same time, short bitcoin continued to decline with $2.6 million in outflows for the week.

Others in the space also enjoyed inflows, and by the end, it came out to be the strongest month of inflows so far for the year 2022. This is because there had been a recorded $474 million, which had almost made up for the outflows that had rocked cryptocurrencies in the month of June with a total of $481 million.

BTC trading at $22,900 | Source: BTCUSD on TradingView.com

This now makes it the 5th consecutive week of inflows for all digital investment products, most of which had come from North America. Canada had brought in $67 million while the United States recorded a much lower $15 million.

Across the pond, countries such as Brazil and Sweden also contributed to the inflows, albeit to a lesser degree. Others who saw minor inflows include Solana and Polkadot, with $1.5 million and $0.4 million, respectively.

What This Says For The Market

The reversal of the outflow trend in the month of July follows the recovery in investor sentiment over the last couple of weeks. It shows that retail investors are not the only ones feeling more bullish about the market, but institutional investors were beginning to feel the impact of the recovery too.

Most prominent has been bitcoin which has enjoyed the most of these inflows. And although Ethereum failed to make a marked recovery from institutional investors, it, too, had been seeing growing confidence in the market lately.

Essentially, the turn in the tide has come despite low trading activity in the space. Net flows from exchanges continue to point towards an accumulation trend that mirrors this bullish sentiment. Since investors are bringing this bullish trend from the month of July into August, it is quite possible that there is more recovery to come in the market.

Featured image from BitIRA, chart from TradingView.com

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Market Downtrend Trigger Bitcoin Inflows From Institutional Investors

The market continues to be in disarray as the price of bitcoin has now fallen to the low $30,000s. This had been preceded by declining faith in the market thus translating to fewer inflows/more outflows in the last couple of weeks. However, with the price now at the lowest, it has been this year, institutional sentiment towards the digital asset has changed and this has resulted in significant inflows into the digital asset for the first time in weeks.

$45 Million Flows Into Bitcoin

Bitcoin has now seen inflows following several weeks of outflows. The past week has proven to be good for the pioneer cryptocurrency which saw inflows as high as $45 million. It is a complete turnaround from the institutional investor side which has been pulling money out of the digital asset to presumably put towards their altcoin portfolios.

Related Reading | Bitcoin Exchange Inflows Hit Three-Month High As Market Braces For More Downside

Naturally, these institutional investors had been pulling out when indicators had been pointing towards a bear market, and have now returned to take their share of the pie with bitcoin trading at low prices. It marks the return of positive sentiment among these investors.

Short Bitcoin also followed this same trend and has ridden the wave into its second-largest weekly inflows on record. The past week saw $4 million total flow into Short Bitcoin which has now brought its total asset under management (AuM) to a new high of $45 million.

BTC struggles to find support above $31,000 | Source: BTCUSD on TradingView.com

Other digital asset investment products were not left out of the inflow galore. This time around, there was a total of $40 million flowing into digital asset investment products in a surprising turnaround. 

Altcoins were not left out of this though even though outflows were more dominant for last week. However, Solana would break away from the mold in this regard to be the only altcoin that recorded any significant inflows with $1.9 million flowing into the Digital asset. 

As for other altcoins, the outflows continue as negative sentiment continues to rock the cryptocurrency. It saw $12.5 million leave the digital asset in the one-week period. So far, 0.8% of the total Ethereum AuM has left the digital asset as its year-to-date outflows have now reached $207 million.

Related Reading | Bitcoin Price Crashes Below $30K As Markets Show Signs Of Paranoia

The inflows and outflows remained inconsistent across various market regions. The CoinShares reports show that investment products in the North American markets had recorded $66 million. Across the pond in Europe, outflows dominated with a total of $26 million leaving digital asset investment products in the region.

Nonetheless, the new trend of inflows coming into assets like Bitcoin and Solana prove that institutional investments had come out of the woodwork to take advantage of the price weakness that had been displayed in the market. This price weakness continues with bitcoin still struggling to establish a support level above the $31,000 price range. 

Featured image from Investopedia, chart from TradingView.com

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Bitcoin Leads As Markets Sees Record Outflows. Bear Market Incoming?

Bitcoin and altcoins have not had the best week according to reports coming out of the market. The crypto market as a whole has been enjoying months of continuous inflows following hot on the heels of the recent market rally. It has pushed crypto-assets such as bitcoin towards new highs as inflows had hit a new record alongside assets under management. But it seems that this is changing.

Coming off the back of what was 17 consecutive weeks of inflows, the market is now seeing movement in the opposite direction. While assets such as ethereum had previously recorded outflows at various times, they had been isolated to a select few. Now the whole market is seeing its first week of outflows after four months of inflows, setting a record at the same time.

Related Reading | Millennial Millionaires Are The Most Bullish On Crypto, Survey Finds

Largest Record Outflows

The total amount of outflows for last week came out to a total of $142 million. This marked the first week of outflows after a 17-week inflows streak that brought assets under management towards record highs. Not only was this the first week of outflows following over four months of inflows, but it is also the largest weekly outflow from the crypto market on record.

This follows an impressive rally from the crypto market where major cryptocurrencies touched towards a new high. There have been sell-offs all across the market as investors have taken profit and institutional investors are not left out. However, the outflows, despite being a record high, represent only a small total (0.23%) of the asset under management and are also meager compared to the outflows of 2018 that touched as high as 1.6% of total AuM.

The total inflows for the year had reached a record high of $9.5 billion, almost 50% higher than the record that was set in 2020 of $6.7 billion. So despite the outflows, inflows for the year still remain at a record high.

CoinShares also notes that the crypto market is not the only one that has recorded outflows either. Risk assets have all seen outflows after the U.S. Fed had released its statement on tapering.

Bitcoin Leads Outflows

Bitcoin took the lead for the asset with the most outflows for the week. The digital asset had seen its price plummet back to below $50,000 since hitting its all-time high of $69K but had continued to maintain inflows in the weeks following that. This marks the first outflows for over 17 weeks but remains firmly below outflows levels recorded in June that touched as high as $150 million.

Related Reading | Struggling Prices Beats Bitcoin Expectations Down From $100K To $50K

Ethereum has alternated between inflows and outflows for the last 17 weeks. The second-largest cryptocurrency also saw record outflows for the week with a total of $64 million in outflows as it continues to counter bitcoin’s outflows.

Solana, Polkadot, and multi-asset investment products were spared of the onslaught as they saw $6.7 million, $2.5 million, and $1.5 million in inflows respectively.

BTC recovers above $48K | Source: BTCUSD on TradingView.com
Featured image from Wikipedia, chart from TradingView.com