Crypto Investment Outflows Surge as Institutions Eye Bitcoin

Last week, digital asset investment products with a concentration on Solana ($SOL), XRP ($XRP), and Cardano ($ADA) saw outflows of over $54 million, with $BTC investment products experiencing $45.3 million in outflows.

According to the Digital Asset Fund Flows Weekly report, eight of the last nine weeks have seen outflows, with total outflows reaching $455 million and net inflows for the year declining to just $51 million.

The United States is responsible for 77 percent of the outflows, while Germany, Canada, and Sweden have also seen institutional investors withdraw from the industry.

Volumes, the report continues, rose to $1 billion for the week, representing a 42% rise compared to the previous week.

While Bitcoin-focused investment products accounted for 85% of outflows, other products focused on specific digital assets saw outflows, including $4.8 million for Ethereum and $200,000 for multi-asset products.

Notably, products concentrating on Binance’s BNB experienced outflows of $300,000, while those shorting Bitcoin experienced outflows of $3.8 million.

Contrary to the general trend, products focusing on Solana ($SOL) and XRP saw $700,000 and $100,000 in inflows, respectively.

Products investing in the smart contract platform Cardano received $400,000 in remittances, bringing their AUM to $24 million, while XRP-focused products have $57 million and SOL-focused products have $73 million.

After a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States began, the rising outflows in the cryptocurrency space occur at a time when major financial institutions that manage a staggering $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency.

Meltem Demirors, chief strategy officer of CoinShares, noted that at least eight financial titans, including BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America, are “actively working to provide access to Bitcoin and more.”

It is essential to note that the $27 trillion figure represents the total of assets managed by the institutions mentioned above, and only a tiny fraction of this enormous sum is expected to be invested in cryptocurrencies.