- The crypto market has witnessed significant digital asset outflows due to selloffs around Bitcoin funds.
- In the third week of June 2021, the total outflows by selling digital assets reached $79 million, marking the longest drawdown stretch since February 2018.
- The total outflows from Bitcoin funds were $89 million, and Ethereum (ETH) crypto products witnessed a decline of $1.9 million.
- China’s ban on Bitcoin mining has weighed down Bitcoin and also Grayscale’s plan of unlocking 16,000 bitcoins in July.
Large Digital Asset Outflows due to Selloff Concentrated on Bitcoin Funds
A recent report by CoinShares shows significant outflows of digital assets through selling off mainly Bitcoin funds.
The recent crypto investment trends include selling off crypto funds by institutional managers. Most of the selloffs were concentrated in Bitcoin (BTC) funds, resulting in the sixth consecutive weekly outflows.
The total outflows from the invested digital asset reached $79 million in the third week of June 2021. This way, it marked the third weekly decline in a row and the longest drawdown stretch since February 2018.
On the other hand, the total outflows from Bitcoin funds reached $89 million, and Ethereum (ETH) crypto products had a decline of $1.9 million.
YTD Inflows of through Institutional Selling of Bitcoin Products
The year-to-date investment in Bitcoin products has generated over $4.1 billion in net inflows.
Simultaneously, Ethereum products have reached the $992 million mark since the beginning of 2021.
Various multi-asset funds that have a basket of cryptocurrencies resisted the downtrend in the third week of June by receiving $10 million in inflows.
All of these funds together have now generated inflows of $351 million this year.
Institutional purchases of cryptocurrencies have slowed down during the past few weeks because portfolio managers have kept tracing a huge decline in asset values.
Current Market Situation as of June 23, 2021
Currently, investors are trading Bitcoin at $34,029, which recovered marginally after its combined market value declined by 50 percent ($1.4 trillion) since it peaked in May.
Although on-chain metrics are showing positive signs of a rebound, long-term asset holders bought Bitcoin holders overlooking newer wallets. Overall market sentiment still has a downward trend because of negative headlines.
Also, after China has imposed a ban on Bitcoin mining, it has weighed down Bitcoin and the impending unlocking of 16,000 bitcoins by Grayscale in July. As a result, the investors’ response seems sluggish.