The most recent report from CoinShares indicates that there have been minor outflows from institutional cryptocurrency investment products in the past week. CoinShares’ “Digital Asset Fund Flows Weekly” report, released on April 15, reveals that institutional investors have decreased their exposure to digital assets, resulting in total outflows of $126 million. Once again, the majority of this movement can be attributed to Bitcoin, with $110 million in outflows. CoinShares explains that this outflow highlights investors’ hesitancy as the positive momentum begins to fade. In the month leading up to these outflows, there were inflows of $520 million into crypto funds, with more than 99% of that going into Bitcoin.
According to the report, weekly trading volumes in investment products have increased from $17 billion to $21 billion in the week ending April 12. James Butterfill, CoinShares’ head of research, commented on the data, stating that the decrease in institutional investment follows significant selling due to geopolitical tensions and uncertainties surrounding Federal Reserve rate cuts in June. Institutions have withdrawn nearly $82 million from spot Bitcoin trades ETFs between April 8 and April 12, as the exodus from Grayscale’s GBTC continues.
In terms of regional inflows and outflows, only Australia, Brazil, and Germany have shown inflows, with $1.6 million, $3 million, and $28.6 million incoming, respectively. The largest outflows have come from the United States, with $145 million.
While Bitcoin has seen an overall increase in value on longer time frames, its price action has been volatile over the past few days. Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin experienced a sharp drop on Monday, falling from $66,008 to an intraday low of $63,940.
Analysts at CryptoQuant believe that there is a high probability of further price correction for Bitcoin, citing factors such as high average 30-day funding rates, resistance at the current all-time high, and a market setup that allows large players to establish significant positions.
The recent drop in BTC prices coincided with the approval of spot Bitcoin ETFs in Hong Kong. However, the launch of these ETFs has not yet taken place, disappointing market participants who were expecting immediate trading. Bloomberg ETF analyst Eric Balchunas suggests that trading may begin next week. Balchunas warns not to expect significant flows from the HK spot Bitcoin ETFs, as the market is still relatively small compared to the U.S. ETF sector.
The combination of reduced investor sentiment around HK spot Bitcoin ETFs and geopolitical tensions in the Middle East is likely to put 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 and analysis when making investment decisions.