Institutional Investors Withdraw $1.94B from Bitcoin and Crypto Funds

In recent developments, institutional investors have taken out a substantial $1.94 billion from cryptocurrency funds within just one week. This marks the third-largest instance of withdrawals since 2018, according to data from CoinShares.

Key Takeaways

Institutional investors pulled $1.94 billion from crypto funds in a week, making it a significant outflow period.
This marked the fourth week in a row of withdrawals, totaling $4.92 billion during that time.
Bitcoin saw the largest withdrawals at $1.27 billion, followed by Ethereum at $589 million.
Despite recent selloffs, year-to-date inflows into cryptocurrency still amount to $44.4 billion.

Institutional investors pull $1.94B from Bitcoin and crypto funds - 1

Significant Outflows from Crypto Assets

According to CoinShares, the outflow of $1.94 billion from both Bitcoin and other cryptocurrency assets occurred over a single week. This represents a continuous trend, with withdrawals extending for four weeks and accumulating to $4.92 billion during this time. Consequently, this period is recognized as the third largest streak of outflows since 2018. The withdrawals accounted for 2.9% of all assets managed, and when combined with recent price drops, there has been a 36% decrease in total assets under management.

Bitcoin led the pack in withdrawals, with $1.27 billion being pulled out, while Ethereum followed with $589 million. Other cryptocurrencies were also affected, with Solana experiencing $156 million in outflows. On a more positive note, XRP recorded inflows of $89.3 million, deviating from the general trend of outflows.

Easing of Selling Pressure

The selling pressure appeared to ease on Friday, resulting in $258 million in inflows after seven consecutive days of outflows. Bitcoin alone accounted for $225 million of these inflows, while Ethereum saw an inflow of $57.5 million. Despite the recent trend of withdrawals, the year-to-date inflows into cryptocurrencies remain robust at $44.4 billion, according to CoinShares.

This report emerges amid ongoing fluctuations in the cryptocurrency markets. As investor sentiment shifts, it remains crucial for both institutional and retail investors to stay informed about market dynamics and trends.