For most of this year, institutional cryptocurrency investors have been exiting the market, especially as a bear market has already formed. However, Ethereum suffered much greater losses in this regard than other assets, and the outflow of funds dragged down the decrease in total assets under management (AuM)
For most of this year, institutional cryptocurrency investors have been exiting the market, especially as a bear market has already formed. However, Ethereum suffered much greater losses in this regard than other assets, and the outflow of funds dragged down the decrease in total assets under management (AuM). At the same time, Ethereum was in trouble after falling below the support level of $1600.
Institutional investors exiting Ethereum
CoinShares, an alternative asset management company, revealed in the latest issue of the Digital Asset Flow Weekly that institutional investors are increasingly averse to Ethereum.
Its characteristic is the significant outflow of funds within a few months, leading to a faster decline in its managed assets compared to any other encrypted assets.
The outflow trend continued until last week, with a total outflow of $4.8 million from Ethereum funds. According to CoinShares, this has resulted in a total outflow of $108 million from the digital asset so far this year. This number also accounts for 1.6% of Ethereum's total assets under management, which is the highest proportion of all asset outflows.
This trend indicates that institutional investors' interest in Ethereum is weakening. Considering that as investors withdraw from Ethereum, counterfeit currencies such as XRP have inflows of $700000, this is even more eye-catching.
The asset manager proposed that this means Ethereum is "the least favored digital asset for ETP investors this year".
Bitcoin has not been excluded
Although Ethereum is undoubtedly not the favorite of institutional investors, it is not the only large cryptocurrency that suffered from capital outflows last week. Bitcoin once again experienced its largest outflow of this week, with Bitcoin funds outflow of $69 million. This is in stark contrast to short selling Bitcoin, which inflows $15 million per week, reaching a new high in five months.
Blockchain stocks also suffered another week of outflows this week, totaling $10.8 million. Overall, the current outflow of funds has led to an outflow of $294 million from cryptocurrency and blockchain related funds, accounting for 0.9% of the total assets under management.
The significant decrease in trading volume also highlights the bearish sentiment of institutional investors. The asset management company reported that last week's trading volume was only $754 million, a 73% decrease from the previous week's figure.
Despite last week's poor mood, top assets seem to have performed better this week, with Bitcoin and Ethereum's cryptocurrency exchange trading volume increasing by 96.28% and 41.16%, respectively. This may indicate that after a difficult weekend, the situation is about to reverse.
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