How Capital Flows in Bitcoin and Crypto Investment Products for Institutional Companies?

• Crypto investment products managed by asset managers such as Grayscale, 21Shares, Bitwise, and ProShares experienced outflows of $53.5 million last week.
• The U.S. market was the main driver of negative sentiment, accounting for 77% of the outflows, said Butterfill. Germany, Canada, and Sweden also experienced significant outflows regionally last week.
• Despite creating the largest single-week inflows since March in the previous week, short-term Bitcoin funds also saw outflows of $3.8 million.

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Money outflows continued to be seen in Bitcoin and cryptocurrency investment products last week: Blockchain stocks were also affected by the outflows.

The Status of Bitcoin and Crypto Investment Products

Crypto investment products managed by asset managers like Grayscale, 21Shares, Bitwise, and ProShares experienced outflows of $53.5 million last week, contributing to a five-week consecutive decline.

While the outflows were slightly less than the $59.3 million outflows seen the previous week, with outflows in eight of the last nine weeks, CoinShares Research Chairman James Butterfill noted that total outflows for the period have now reached $455 million.

Net inflows for the year-to-date have dropped to just $51 million following the outflow streak, despite starting the year on a positive note. The U.S. market was the main driver of negative sentiment, accounting for 77% of the outflows, Butterfill said. Germany, Canada, and Sweden also experienced significant outflows regionally last week.

Blockchain stocks were also impacted, marking its sixth consecutive week with $9.6 million in outflows. However, trading volume increased, rising 42% to over $1 billion, surpassing the previous week’s $754 million.

Bitcoin products reversing the trend compared to Solana, Cardano, and XRP

Bitcoin funds dominated the outflows, losing $45 million last week – 85% of the total. Despite creating the largest single-week inflows since March in the previous week, short-term Bitcoin funds also saw outflows of $3.8 million – still remaining the most popular digital asset investment product this month.

Similarly, Ethereum experienced outflows of $4.8 million despite high demand for attractive investment fundamentals and staking yields. BNB and Polygon products also saw small outflows of $0.3 million and $0.1 million, respectively.

However, Solana, Cardano, and XRP funds defied the trend with inflows of $0.7 million, $0.4 million, and $0.1 million, respectively – indicating potential areas of optimism in the digital asset space.