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Institutional crypto asset products register weekly outflow of $423 mln

Crypto market hits new lows as a new report shows a weekly outflow of $423 million

Published: Jun 29, 2022 03:06:07 PM IST

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Last week, digital asset investment products saw record outflows totalling $423 million, with institutional investors from Canada accounting for nearly all of the mass slaughter in the crypto market.

According to the latest CoinShares' weekly 'Digital Asset Fund Flows' report, the outflows last weekend were most likely responsible for Bitcoin's drop to $17,760. "The outflows were solely focused on Bitcoin," said analyst James Butterfill, "with net outflows for the week totalling US$453 million."

Furthermore, the report stated that Canadian investors sold $487.5 million worth of digital asset products between June 20 and June 24. The outflow was partially offset by $70 million in inflows from other countries, including $41 million from the United States alone. Outside of the United States, German and Swiss investors contributed $11 million and $10.4 million, respectively. Brazilians and Australians also contributed $1.6 million and $1.4 million, respectively.

If Bitcoin was excluded from the calculations, Ethereum contributed an inflow of around $11 million, while other altcoins contributed minor positive flows. According to the report, this was Ethereum's first inflow following 11 consecutive negative sessions. Following the US Federal Reserve's reversal of pandemic-era stimulus measures, crypto prices have plummeted amid bearishness.

The Bitcoin market dropped below $20,000 twice in the last week. According to the report, Bitcoin saw $15 million in inflows. The CoinShares report attributed this situation to ProShares' June 22 launch of the first-ever short Bitcoin exchange-traded fund (ETF) in the United States.

Investment products with Bitcoin (BTC) exposure lost $453 million, while Solana (SOL) products lost $100,000. The total outflows by institutional investors were $422.8 million, the highest weekly shedding since CoinShares records began. Notably, the total is more than double the previous high of $198 million set in January of this year.

The report said, “Regionally, the outflows were almost solely from Canadian exchanges and one specific provider. The outflows occurred on 17th June but were reflected in last week’s figures due to trade reporting lags, and likely responsible for Bitcoin’s decline to US$17,760 that weekend.”

In October of last year, the overall AUM (Assets Under Management) of global digital asset investment products or crypto funds reached an all-time high of around $75 billion. The current figure is $36.18 billion.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash