Institutional outflows from cryptocurrency funds intensified last week, this is a clear sign that fund managers were still making profits on their Bitcoin (BTC) holdings following the historic run-up last April.
Digital assets investments saw total outflows of USD 19.5 M last week which ended Friday, marking the fourth consecutive weekly drawdown, according to analysts.
These outflows were concentrated in Bitcoin-focused funds, where the assets under their management declined by USD 20 million. This was also the fourth consecutive weekly decline. At the same time funds which are dedicated to Ethereum (ETH) saw a weekly outflow totaling USD 9.5 million.
Multi-asset investment products continued to move in the opposite direction to the market as institutional investors increased their allocation by a cumulative USD 7.5 million. Multi-asset funds attracted USD 11.9 million in inflows over the past month. In parallel, Bitcoin funds have been seeing cumulative outflows totaling USD 67.8 million over the same period.
Institutional selling of cryptocurrency this past June reached its longest streak since the dawning of the 2018 bear market. At that time, the Bitcoin price was drifting around the USD 32,000 mark following several failed breakout attempts. The trend has clearly shifted this past week, with Bitcoin briefly reclaiming USD 42,000 before correcting lower.
Institutions continue to have significant exposure to cryptocurrency investments. Institutional exposure could rise in the short term if the bullish case for the four-year market cycle is validated.
