According to the most recent data from CoinShares, institutional crypto investment funds experienced slight reductions in assets over the last week.
Based on the latest weekly report from CoinShares’ “Digital Asset Fund Flows,” which was released on April 15, institutional investors have decreased their holdings in digital assets. A total of $126 million was withdrawn from crypto investment products during this period.
Bitcoin (BTC) accounted for most of the total withdrawals once more, amounting to $110 million.
CoinShares noted that the recent surge in withdrawals from crypto investment funds indicates a degree of uncertainty among investors, as the initial excitement has faded. In the month preceding these outflows, an influx of $520 million was observed in crypto funds, with over 99% going into Bitcoin.
The report shows that trading volumes for investment products increased from $17 billion during the week before April 12, to $21 billion in the last week.
CoinShares head of research James Butterfill said,
“ETP/ETF activity dropped relative to the overall market, from 40% of total volumes on trusted exchanges over the last month to 31% last week, demonstrating this caution among investors.”
Amidst heavy selling due to geopolitical tensions and doubts about upcoming Federal Reserve rate cuts in June, institutions withdrew approximately $82 million from Bitcoin spot ETF trades between April 8 and April 12. Meanwhile, the exit from Grayscale’s GBTC also contributed to this trend.
In different parts of the world, Australia, Brazil, and Germany were the countries that experienced capital inflows, with amounts of $1.6 million, $3 million, and $28.6 million respectively. On the other hand, the largest outflows occurred in the United States, totaling $145 million.
BTC price drops below $65,000 amid spot Bitcoin ETF approval in Hong Kong
On longer time scales, Bitcoin continues to climb, but its recent price fluctuations have been quite erratic.
According to data from CryptoMoon Markets Pro and TradingView, Bitcoin experienced a significant drop at the opening of Wall Street on Monday, decreasing from $66,008 to a low of $63,940 during the day.
According to CryptoQuant’s analysis team, there’s a strong likelihood that Bitcoin’s price will experience further correction. This assessment is based on several indicators: firstly, elevated average 30-day funding rates suggest ongoing market instability; secondly, the resistance presented by the current record-high price may prevent further gains; and lastly, market conditions seem conducive to major investors building up substantial positions.
CryptoQuant author Gaa said:
“Historically, when there are large Retail profit-taking moves, it means a potential top is in the making. After the rapid fall in prices over the last two days, there has been a significant outflow of realizations by these holders.”
After Hong Kong announced the approval of spot Bitcoin ETFs, making it the second country to do so, there was a recent drop in BTC prices. Nevertheless, these ETFs have not been launched in Hong Kong yet as many had anticipated. It’s predicted that trading might commence as early as next week, based on Bloomberg ETF analyst Eric Balchunas’ observations.
Balchunas advised his audience that they should not anticipate heavy trading volumes from Bitcoin ETFs in Hong Kong since its market size is considerably smaller than that of the US ETF industry.
The decreased optimism among investors regarding Hong Kong’s Bitcoin ETFs and the ongoing geopolitical conflicts in the Middle East could cause Bitcoin’s price to drop. However, it’s expected that this downward trend may continue until after the Bitcoin supply halving event takes place.
Read More
- LDO PREDICTION. LDO cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- Spot Solana ETF approvals – Closer than you think?
- Orca crypto price prediction: Buying opportunity ahead, or bull trap?
- Can Ethereum ETFs outperform Bitcoin ETFs – Yes or No?
- Chainlink to $20, when? Why analysts are positive about LINK’s future
- Citi analysts upgrade Coinbase stock to ‘BUY’ after +30% rally projection
- Why iShares’ Bitcoin Trust stock surged 13% in 5 days, and what’s ahead
- Ethereum ETF Day 1 beats ‘20% of BTC’ estimate – What’s next?
- Solana memecoin BODEN feels the heat after Biden’s exit: Will SOL suffer?
2024-04-15 22:12