The price of Bitcoin has been on an upswing for the past week, bouncing back up from 2016 lows, promising a better year in 2017. But this rebound is not yet reflected in the institutions’ pile of exposure to the cryptocurrency. It is therefore no surprise that the CBOE’s Bitcoin index funds have struggled to keep up with the steady rebound in price.
Despite its recent price rebound, bitcoin continues to be a top metric for institutional investors to monitor. The recent moves by the Mexican central bank to sell its holdings of cryptocurrency could not have come at a worse time for the market.
This article is intended to be informative, and not a market call. It is not intended to be a call to action or a buy or sell recommendation. It is intended to inform readers about the following:. Read more about btc price analysis and let us know what you think.
The amount of money invested in institutional Bitcoin products has continued to fall during the last week.
CoinShares reports in its Digital Asset Fund Flows report dated July 26 that institutional crypto products had withdrawals for the third week in a row, with $28 million leaving the sector during the week ending July 23. As a result, the week witnessed a 170 percent rise in outflows compared to the previous week’s $10.4 million.
According to the data, Bitcoin-based funds experienced the most withdrawals, accounting for $24 million, or 85 percent of all crypto outflows. BTC’s monthly outflows have reached $49 million, while year-to-date flows have remained positive at $4.1 billion. According to CoinShares:
“Despite more recent positive remarks from major industry leaders, last week’s outflows indicate negative sentiment still permeates the asset class.”
Over the week, ether products experienced $7.3 million in withdrawals, while multi-asset funds had a net inflow of $3.1 million, bucking the trend. Multi-asset funds are the only kind of crypto investment product that has had net inflows in every week of 2021, according to the study.
Despite the decline, Grayscale, a prominent crypto asset management, had a $2.5 million influx for the time. As of July 27, it reported total assets under management of $33.6 billion in its latest asset under management bulletin.
Institutional bitcoin selling hits its longest run since February 2018
CoinShares found that investment product turnover remained low this week, at $1.7 billion, accounting for just 22% of the weekly average in May.
CoinShares’ data, on the other hand, was collected prior to Monday’s positive market activity, which saw Bitcoin rise 15% in less than three hours.
A couple weeks ago, we reported on the fact that institutions continue to offload their bitcoin exposure, despite the fact that the price of bitcoin is rebounded to pre-crisis levels. At the time, it was hard to credit the reason for this behavior, and not very clear on what would motivate institutions – and their asset managers – to continue to offload the asset.. Read more about btc dump and let us know what you think.
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