Last week, Ethereum investment products posted a record outflow of nearly $50 million, a CoinShares report revealed. The amount lost is close to R$250 million.
The document points out that the capital flight reflects a low sentiment among institutional investors. In addition, it is noteworthy that this is the third week in a row in which amounts are withdrawn from ETH-related products.
Meanwhile, more diversified investment products showed an increase of R$30 million over the same period.
After a high demand in early 2021, Ethereum products now register million dollar outputs. In just one week, an exodus of nearly $50 million took place by institutions.
“This outflow represents 5% of the inflows of US$943 million in the year to date,” said CoinShares.
However, withdrawals were not restricted to products related only to Ethereum. For the fourth week in a row, total capital allocated to investment products involving cryptocurrencies declined. This time around $44 million has left the market.
From May to the present day, around R$1.5 billion of institutional capital has left this type of investment in digital currencies.
Managers CoinShares and 3iQ had the biggest losses in the market in the last week, with respective outflows of US$ 56.4 million and 27.1 million. Grayscale, in turn, obtained US$ 1.3 million in new investments.
Diversification attracts institutions
While institutional capital is flowing out of Ethereum-related products, diversified products have attracted interest from large companies.
“Investment products with multiple cryptoactives are going against the negative trend and showing an inflow of $6 million last week. The result suggests that the institutional interest has not ended, with an interest in diversification”, says the report.
In turn, Bitcoin-based investment products showed a withdrawal of $1.3 million.
This is the seventh week in a row that capital leaves BTC-related products. However, the survey reveals a slowdown in outputs, with a reduction of practically 99%.
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