Bitcoin (BTC) witnessed the largest on record outflow last week, said the London-based digital asset manager CoinShares in a report earlier this week.
Bigger bets for Ethereum
In the report, CoinShares, the second-biggest and largest European digital asset manager said Bitcoin investment products recorded a colossal $98 million in outflows:
“The outflows were solely from Bitcoin investment products which totaled $98 million or 0.2% of total assets under management. While small, this marks the largest outflow we have recorded, with the second largest at $19 million in May 2019.”
Before crypto prices plummeted last week, BTC investment products had major outflows. Meanwhile, the second largest cryptocurrency, Ethereum (ETH), experienced ample institutional investment inflows. Compared to BTCs $3.1 billion worth of inflows, ETH trading volumes in digital asset investment products totaled $4.1 billion.
Only BTC investment products documented outflows while ETH and other altcoins saw sizable inflows last week. Altcoin investment products overall totaled $48 million in inflows, suggesting “that investors have been diversifying out of BTC and into altcoin investment products,” as per CoinShares.
Inflows on other alts
Following on the heels of ETH, which saw $27 million worth of inflows last week, Cardano (ADA) recorded $6 million and Polkadot (DOT) $3.3 million.
After hitting an all time high just under $65,000 in mid-April, the price of BTC fell sharply by a staggering 35 percent, as investors diversified their cryptocurrency assets with new developments in their networks such as ETH.
Even though crypto asset investment products registered a major outflow of $50 million, the first since October last year and the largest since May 2019, these metrics are unlikely to impact the general attitude surrounding digital assets.
“Historical data implies that outflows of this nature have not marked pivotal points in sentiment change for digital assets,” ended CoinShares.