Assets Under Management AUM

Institutions cautious as crypto products show lowest volume since October

Institutional investors have yet to regain confidence in the crypto markets, with the weekly volume of crypto investment products falling to its lowest level since October 2020.

According to July 12 from CoinShares Weekly digital asset fund feeds report, $ 1.58 billion worth of digital asset products changed hands between July 5 and 9.

Crypto investing products also saw outflows of $ 4 million for the week, with around $ 7 million in Bitcoin Tracking (BTC) product outflows. However, European Bitcoin products have seen inflows overall, suggesting some investors believe the worst of the 2021 bear market may be behind us.

Ethereum products (ETH) also registered minor entries of $ 800,000 for the week.

Capital flows for institutional crypto products: CoinShares

The latest data from CoinShares suggests institutional investors are sitting on the close after the brief bullish rally the week before which saw $ 63 million injected into BTC and ETH products combined.

Institutional Bitcoin products have now posted exits for 8 of the past 9 weeks. Sophisticated investors also offloaded the ether exposure last month, with exits totaling $ 64.3 million since the week ending June 6.

Related: Bitcoin price drops below $ 33,000, but on-chain data suggests BTC buildup

Although investors appeared cautious on BTC and ETH, CoinShares notes that multi-asset products continued to see entries as institutions spread their risk across the sector, posting entries of $ 1.2 million.

Multi-asset products have recorded cumulative inflows of $ 362 million since the start of the year and now represent 16.5% of assets under management (AUM) of multi-asset funds. CoinShares wrote:

“Although inflows remain relatively low compared to Bitcoin and Ethereum, the data implies that investors are increasingly looking to diversify their digital assets.”

Investors have also shown interest in Cardano, with entries totaling $ 600,000 last week. Despite the recent regulatory review of Binance, Binance Coin products saw inflows of $ 400,000.

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