Bitcoin (BTC), the world’s most valuable digital currency, has seen a jump in its price during the last few weeks as the cryptocurrency crossed the level of $42,000 on 31 July for the first time in seven weeks. However, the institutional demand for Bitcoin has remained slow during the mentioned period.
CoinShares, one of the world’s largest crypto asset managers, recently published its weekly digital asset fund flows report and highlighted a substantial jump in outflows from BTC investment products. Approximately $20 million worth of investment has left BTC products in the last week.
Ethereum, the world’s second-largest cryptocurrency, saw nearly $9.5 million worth of outflows last week. Despite the recent outflows from BTC and ETH investment products, the multi-asset crypto investment products attracted a total of $7.5 million worth of inflows.
“Bitcoin (BTC) saw outflows totaling US$20m, its 4th consecutive week, and has borne the brunt of the outflows over this price rout in digital assets. Regardless inflows year-to-date remain high at US$4.1bn. Ethereum saw outflows totaling US$9.5m, its second consecutive week, although investors have been more forgiving, seeing outflows in only 6 of the last 12 weeks compared to 10 for Bitcoin. Multi-asset investment products continued to buck the trend with another week of inflows totaling US$7.5m,” CoinShares mentioned.
BTC’s Network Activity
Bitcoin’s network activity has increased sharply since the last week of July 2021. In addition to the jump in the price of BTC, active Bitcoin addresses jumped by nearly 30% during the last week of July 2021. BTC market dominance touched a high of 48% recently, but the latest jump in Ethereum and Cardano caused a substantial drop in the crypto market dominance of Bitcoin.
“Since the outflows began, prompted by negative price action in mid-May, outflows have totaled US$295m, representing 1% of assets under management (AuM). During the 2018 price rout, outflows were far greater, totaling 5% of AuM but occurred over a shorter period of 9 weeks rather than the current 12 weeks seen during the current price decline,” CoinShares added in the report.