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Ether investment products see a flight of $50M as Institutions turns bearish

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  • The last four consecutive weeks saw an outflow of capital from the cryptocurrency segment
  • Multi-assets are unaffected by the gloom
  • Institutional investors are losing faith in Ether

As per CoinShares’ Digital Asset Fund Flows Weekly report, Ether is seeing red and has suffered record outflows this past week. However, Bitcoin outflows have started to flatten out and stabilize. Big institutions have turned bearish and have withdrawn a record $50M of their Ether investments.

According to the report, Ether has seen a flight of capital worth $64.3 million since the week ending June 6. The outflows have been continuing for the last three consecutive weeks.

The Crypto segment sees a flight of capital for the last four consecutive weeks.

Since the start of 2021, $943 million has flowed into Ether’s investment products. The crypto industry has seen outflows for the last four consecutive weeks, with a flight of capital worth $44 million from the cryptocurrency segment. The report also estimates that there has been an outflow of capital worth $313 million from institutional crypto products since mid-May.

Industry sees bearish sentiments for the last three months.

The cryptocurrency segment has seen bearish sentiments for the last three months. At present, Ether is facing the brunt and experiencing a huge flight of capital. Bitcoin outflows are slowing down and have come down to $1.3 million from $89 million for the previous week. Bitcoin has been experiencing the flight of capital for the last seven consecutive weeks since May.Minor inflows have been seen in Bitcoin products, including Grayscale hinting at mixed sentiment amongst investors regarding BTC.

Multi-assets are unaffected by the gloom in the cryptocurrency market

CoinShares’ report also reveals that multi-assets are unaffected by the gloom in the cryptocurrency market and have been posting weekly inflows. Inflows worth US$6m last week hint that investors have still not lost faith in digital tokens but are trying to even the spread and diversify

CoinShares have seen outflows of assets worth $56.4 million, 3iQ$27.1 million

Institutional crypto investment products were on a bull run in the earlier part of 2021 and investors have been taking profits during the downturn. CoinShares and 3iQ are the second and third largest crypto asset managers, respectively. CoinShares have seen outflows of assets worth $56.4 million, while 3iQ saw outflows of $27.1 million for the week. Segment Leader Grayscale remained rock solid with a minor inflow of $1.3 million for the past week.

CoinShares reports that institutional players continue to reap rich dividends on their cryptocurrency holdings. Funds dedicated to Bitcoin have registered their sixth consecutive weekly outflows.

Total outflows from digital asset investment products equaled $79 million last week. It was the third consecutive weekly decline since February 2018. Flight of capital from Bitcoin was $89 million, whereas Ethereum (ETH) products saw a $1.9 million decrease.

Taking Year to date data, Bitcoin investment produced $4.1 billion in net inflows, and Ether products raked in an accumulated $992 million since the start of 2021.

Multi-asset investment continues to buck the trend and registered $10 million in inflows. These funds have now generated $351 million in inflows this Year, data revealed.

Institutional investors are deserting Ether

Ethereum investment products were getting better off than Bitcoin in recent months. Ether products have been experiencing inflows while BTC products suffered a flight of capital till last month. However, institutional investors are losing faith in the world’s second-biggest cryptocurrency. 

At the time of writing, ETH prices stood at $2,135, up 8.5%, while BTC prices stood at$34,900 after gain.

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