Institutional investment managers continued to sell cryptocurrencies like Bitcoin (BTC) and Ether (ETH) last week, despite the fact that the size of the outflows has decreased significantly from the previous weeks, which are early signs that the market’s worst sell-off has subsided.
CoinShares’ weekly fund flow report showed a decrease of $ 21.4 million in the past seven days, compared to an outflow of $ 94 million the previous week. Ether products saw their largest weekly drawdown at $ 12.7 million. ETH funds had outperformed Bitcoin in recent months, reflecting the need to catch up after the second largest cryptocurrency.
Overall, institutional investors have been net sellers of digital assets for four of the last five weeks. The period leading up to May 24 saw the largest weekly outflow of $ 97 million, according to CoinShares data.
Connected: Record outflow of $ 141 million from Bitcoin products signals that institutions are pessimistic about BTC: CoinShares
“Although sentiment weakened last month, given the magnitude of the inflows this year, investors remain generally engaged,” the report said, alluding to the fact that crypto mutual funds have posted $ 5.8 billion this year alone Raised US dollars. That’s only 13% of the $ 6.7 billion inflows recorded throughout 2020.
As Cointelegraph reported, institutional managers’ crypto holdings hit record levels during the peak of the bull market earlier this year. Of course, many investors have taken profits following the recent market volatility.
Still, the weekly fund flow report suggests that market sentiment is gradually improving. Case in point, the Bitcoin Fear & Greed Index has rebounded from extreme lows, although it remains on the bearish side. Meanwhile, the price of Bitcoin surged above $ 41,000 on Monday, marking a 12% increase as markets expected to rebound above key technical levels. The price of ether also rebounded 9% to hit $ 2,566.