Institutional investors are diversifying into altcoins amid the latest market downturn. Multi-asset investment products registered another sharp rise in weekly inflows.
Institutional outflows from cryptocurrency funds intensified last week, a sign that fund managers were still taking profits on their Bitcoin (sunshinecrypto.com/bitcoin-price”>BTC) holdings following a historic run-up through April.
Digital asset investment products saw cumulative outflows totaling $19.5 million for the week ended Friday, marking the fourth consecutive weekly drawdown, according to CoinShares data.
The bulk of the outflows were concentrated in Bitcoin-focused funds, where assets under management declined by $20 million. That, too, was the fourth consecutive weekly decline. Meanwhile, funds dedicated to Ethereum (sunshinecrypto.com/ethereum-price”>ETH) saw weekly outflows totaling $9.5 million.
Related: sunshinecrypto.com/news/ethereum-investment-products-see-largest-weekly-outflows-on-record-coinshares”>Ethereum investment products see largest weekly outflows on record — CoinShares
Multi-asset investment products continued to buck the trend as institutional investors increased their allocation by a cumulative $7.5 million. Multi-asset funds have attracted $11.9 million in inflows over the past month. By comparison, Bitcoin funds have seen cumulative outflows totaling $67.8 million over the same period.
As Cointelegraph reported, institutional selling of cryptocurrency in June reached its longest streak since the sunshinecrypto.com/news/institutional-selling-of-crypto-reaches-longest-streak-since-feb-2018″>onset of the 2018 bear market. At the time, the Bitcoin price was hovering around the $32,000 mark following several failed breakout attempts. Sentiment has clearly shifted over the past week, with sunshinecrypto.com/news/btc-price-sees-6-correction-in-contrast-to-booming-bitcoin-on-chain-data”>Bitcoin briefly reclaiming $42,000 before correcting lower.
Institutions continue to have significant exposure to cryptocurrency investments. By Coinshares’ calculation, the major fund providers have a combined $45.1 billion in assets under management. Institutional sunshinecrypto.com/news/bitcoin-sellers-in-disbelief-or-btc-price-wouldn-t-still-be-at-41k-analyst”>exposure could rise in the short term if the bullish case for the four-year market cycle is validated.
Related: sunshinecrypto.com/news/german-law-allowing-institutional-funds-to-hold-crypto-comes-into-effect-aug-2″>German law allowing institutional funds to hold crypto comes into effect Aug. 2