Ethereum Rival Takes Hit As Institutional Investors Sell-Off Crypto Holdings: CoinShares
Digital assets manager CoinShares says institutional investors are likely taking profits on markets as Bitcoin (BTC) and altcoins suffer major outflows for the seventh week in a row.
In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors sold off $62 million in crypto holdings last week, proportionally similar to the major sell-offs early in 2022.
“Digital asset investment products saw outflows totaling US $62 million, marking the 7th consecutive week of outflows that now totals US $329 million, representing 1% of total assets under management (AuM).
From a proportional perspective, this now matches the run of outflows seen at the beginning of 2022.”
BTC lost $2.7 million in outflows, the same as Ethereum (ETH), according to CoinShares. However, short Bitcoin products, which aim to profit off of downward moves in BTC, saw even more outflows at $6.3 million.
“While the absolute outflows for short-bitcoin are smaller, the total outflow over the last 6 weeks represent 44% of total AuM, compared to just 0.9% for long-bitcoin. This implies investors have been taking profits and exiting short positions rather than implying a structural downshift in sentiment for the asset.”
One Ethereum rival took the biggest hit of all the digital market space last week though, according to CoinShares. Tron (TRX) suffered $51 million in outflows last week.
“Tron, the smart contracting platform, was the primary focus, seeing outflows totaling US $51 million last week, representing 70% of total AuM. We believe this was a single investment product provider removing seed capital rather than anything more ominous.”
XRP and Polygon (MATIC) products enjoyed inflows of $0.6 and $0.4 million, respectively.
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Featured Image: Shutterstock/Aleksandr Kukharskiy