Institutional investors take a bearish stance on Bitcoin and bullish on Ethereum, a key indicator suggests
Institutional investors have grown increasingly bearish on Bitcoin (BTC) and withdrew $141 million worth of cryptocurrency-related investment products, the largest weekly drawdown on record, according to CoinShares.
CoinShares noted that BTC outflows accounted for 8.3% of net inflows this year, but they were still small compared to the outflows recorded in early 2018.
CoinShares said: “Trade volumes in digital asset investment products underscore that investors remain cautious about bitcoin, with weekly trading volumes down 62%.”
Overall, outflows from digital investment products totaled $94 million last week, data on Monday showed.
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It is worth mentioning that BTC inflows remain at $4.2 billion so far this year. The asset represents 65.9% of all capital locked in cryptocurrency investment products.
Even as BTC sees outflows, other major tokens like Ethereum (ETH) and XRP (XRP) continue to see inflows, as does Cardano (ADA).
Source: CoinShares Digital Assets Weekly Money Flow Report as of June 7, 2021.
According to CoinShares, ETH’s investment product inflows totaled around $33 million, making it the “alternative currency of choice for investors.” XRP inflows hit $7 million, the highest number since April.
Meanwhile, BTC was trading 9.6% lower at $33,001.69 at midnight on Tuesday at the last check during the 24-hour tracking period. ETH and ADA fell 9.37% and 10.96% to $2,527.40 and $1.54, respectively.