Summer doldrums? Crypto volumes are down 55%, according to CoinShares

Published at: Aug. 22, 2022

Crypto investment products registered minor weekly outflows last week as volumes plunged to their second-lowest levels of the year, signaling weak demand among institutional investors during the tail end of summer.

Outflows from digital asset investment products totaled $8.7 million in the week ending Aug. 21, CoinShares reported Monday. Bitcoin (BTC) investment products saw a third consecutive week of outflows totaling $15.3 million. Funds with direct exposure to Solana (SOL) also registered minor outflows totaling $1.4 million.

Meanwhile, Ether (ETH) and multi-asset investment products registered small weekly inflows of $2.9 million and $2.7 million, respectively.

Overall, crypto investment products registered $1 billion in weekly volumes, which is 55% below the yearly average.

CoinShares said most of the negative sentiment had been centered around Bitcoin, which tumbled last week after facing a stern rejection at $25,000. Bitcoin currently sits around $21,200, which is below its realized price, or the average price at which BTC’s circulating supply was last purchased.

Related: Over 200K BTC now stored in Bitcoin ETFs and other institutional products

Crypto’s strong correlation with traditional equities leaves the asset class exposed to further volatility ahead of the Federal Reserve’s annual Jackson Hole Summit in Wyoming later this week. While options traders see little cause for concern, Fed Chair Jerome Powell could reinforce the central bank’s policy expectations for the fall when he delivers his Jackson Hole address on Aug. 26.

Look out for Jackson Hole! Here are 5 Bitcoin price triggers for this week. https://t.co/yE0t15DIGv pic.twitter.com/D1zsMKILZv

— Cointelegraph Markets (@CointelegraphMT) August 22, 2022

Large institutions offloaded $5.5 billion worth of BTC between May and July, mostly as a result of forced selling, according to Arcane Research. Institutional investors appear to be hanging out on the sidelines due to crypto market volatility, a rocky macro backdrop and uncertainty on the regulatory front.

Tags
Bitcoin
Bitcoin Price
Investments
Coinshares
Related Posts
Institutional selling of crypto reaches longest streak since Feb 2018
Institutional managers continued to take profits on their cryptocurrency holdings, with funds dedicated to Bitcoin (BTC) registering their sixth consecutive weekly outflows, according to CoinShares. Outflows from digital asset investment products totaled $79 million last week, marking the third consecutive weekly decline and the longest stretch of drawdowns since February 2018. Outflows from Bitcon funds totaled $89 million, whereas Ethereum (ETH) products endured a $1.9 million decline. Year-to-date, Bitcoin investment products have generated over $4.1 billion in net inflows. Ether products, meanwhile, have accumulated $992 million since the start of 2021. Multi-asset investment products that hold a basket of cryptocurrencies …
Bitcoin / June 21, 2021
Institutional inflows into crypto hit lowest levels since October
Capital flows into cryptocurrency investment products rose again last week, though the pace of growth has slowed since the start of the year, possibly marking a local top in institutional demand. Net inflows totaled $21 million for the week ending March 27, according to CoinShares, a European digital asset manager. That was the lowest level since October 2020 when Bitcoin (BTC) was trading sub-$14,000. Coupled with low investment volumes, investor appetite for crypto assets appears to have waned. The decline coincided with the lackluster price performance of major assets like Bitcoin and Ether (ETH), which have been unable to test …
Bitcoin / March 29, 2021
Institutional Bitcoin products tag record AUM despite volume pulling back
Institutional traders have locked a record sum of capital into Bitcoin investment products despite trade volume declining during the second half of 2021. According to CoinShares’ Nov. 15 “Digital Asset Fund Flows Weekly” report, Bitcoin (BTC) investment products saw total inflows of $97.5 million between Nov. 8 and Nov. 12 — pushing the sector’s assets under management (AUM) up to a record $56 billion. Year-to-date (YTD) inflows also tagged $6.5 billion last week. Bitcoin instruments represented 64.6% of the $150.9 million that flowed into digital asset investment products last week. While the record AUM coincided with BTC establishing a new …
Bitcoin / Nov. 16, 2021
Bearish sentiment may soon abate according to Coinshares and Bitcoin metrics
While key Bitcoin (BTC) metrics don’t paint a pretty picture, the bears could be running on fumes. Contrary to analysts warning that Bitcoin could dip to $38,000 “before an eventual breakout”, CoinShares and Arcane Research suggest that the tide could be turning. In brief, Bitcoin institutional outflows were negative four out of the last five weeks, totaling $55 milion. The total assets under management fell to a three-month low of $35 billion midweek last week. CoinShares' findings illustrate that large investors in the Bitcoin ecosystem; those using companies such as Grayscale, CoinsXBT, ProShares, and ETC Group have been reducing their …
Adoption / Jan. 19, 2022
Crypto funds register largest weekly inflows since December
Inflows into cryptocurrency investment funds rose sharply last week, offering cautious optimism that investors are broadening their exposure to digital assets despite geopolitical uncertainty and monetary tightening from central banks. Digital asset investment products registered $127 million worth of cumulative inflows for the week ending March 6, according to CoinShares data. A CoinShares representative told Cointelegraph that this was the highest weekly inflows since Dec. 12, 2021. The increase was also significantly higher than the $36 million of inflows registered the previous week. Like in previous weeks, Bitcoin (BTC) products recorded the largest weekly inflows at $95 million. Bitcoin fund …
Bitcoin / March 7, 2022