CoinShares has released its latest report on institutional crypto investment products, revealing minor outflows over the past week. According to the report, total outflows reached $126 million, with Bitcoin accounting for the majority at $110 million. CoinShares attributed this outflow to investor hesitancy following a decline in positive momentum. In the month leading up to the outflows, crypto funds saw inflows of $520 million, with more than 99% going into Bitcoin.
The report also highlighted an increase in weekly trading volumes, from $17 billion to $21 billion. James Butterfill, CoinShares’ head of research, suggested that these figures were influenced by geopolitical tensions and uncertainties surrounding Federal Reserve rate cuts in June. Between April 8 and April 12, institutions withdrew nearly $82 million from spot Bitcoin trades ETFs, continuing the exodus from Grayscale’s GBTC.
On a regional level, Australia, Brazil, and Germany were the only countries to experience inflows, with $1.6 million, $3 million, and $28.6 million respectively. The United States saw the largest outflows, with $145 million.
Despite Bitcoin’s overall positive performance, its price has been subject to high volatility in recent days. On Monday, the cryptocurrency dropped from $66,008 to an intraday low of $63,940. Analysts at CryptoQuant anticipate further price corrections for Bitcoin due to high funding rates, resistance from its all-time high, and the potential for large players to establish significant positions.
The approval of spot Bitcoin ETFs in Hong Kong contributed to the recent drop in BTC prices. However, the ETFs have not yet been launched, and trading is expected to commence next week. Bloomberg ETF analyst Eric Balchunas cautioned against expecting significant flows from the Hong Kong ETFs, as the market is comparatively small to the US ETF sector. Additionally, geopolitical tensions in the Middle East are likely to exert downward pressure on BTC prices until after the Bitcoin supply halving.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.