The cryptocurrency market fall is prompting institutional investors to liquidate their holdings. The cryptocurrency market value has now fallen to $961.83 billion, a loss of about $1.5 trillion since November.
According to CoinShares’ most recent data, the outflow of digital asset investment products was $102 million last week. Last week, Bitcoin withdrawals of $57 million and Ethereum outflows of $41 million were reported in the midst of the Fed’s monetary tightening and market-wide selloffs.
The flow of digital asset investment products has been slow owing to monetary tightening, with outflows continuing last week as a result of increasing inflation and the depeg of stETH from ETH. Surprisingly, the withdrawals were mostly documented in Americans, totaling $98 million. Meanwhile, European outflows were just $2 million.
In the recent week, 3iQ, Purpose Investments, CoinShares XBT, and ETC Group had withdrawals of 72.1, 43.4, 11.3, and 6.2 million, respectively. Meanwhile, inflows into ProShares, CoinShares Physical, and 21Shares were 24.2, 19.1, and 4.5 million, respectively. In addition, Grayscale, the institutional leader, has only registered 0.3 million in the previous week.
Last week, institutional investors’ interest in Bitcoin and Ethereum fell dramatically. Bitcoin witnessed $57 million in withdrawals last week, bringing the month-to-date total to $91 million. Total assets under management for short-term bitcoin investment products are $55 million, compared to $27 billion for long-term bitcoin investment products.
