This year has been marked by significant volatility in the crypto market, including for Bitcoin, which has seen both gains and losses over the year. Just a month ago, in mid-July, Bitcoin crossed $30,000 and many investors saw this as the start of another bull run.
However, things seem to have taken a turn for the worse as Bitcoin’s price has since stabilized. The asset is currently struggling to find a rise in price, and it seems that sentiment has spilled into digital asset funds. Bitcoin is pouring out of institutional accounts, according to the weekly report from digital asset manager CoinShares have resumed last week.
Outflows from digital asset investment products
Outflows from digital asset investment products have surged in recent weeks, recording a three-week outflow. This would indicate that institutional investors may be avoiding volatile cryptos. This comes two weeks after a short period of influxshowing Ripple’s partial courtroom victory and recent US inflation data led to influx in digital asset products.
However, data shows that outflows resumed last week, and it appears that the euphoria that followed Ripple’s partial triumph against the SEC has dissipated. Digital asset investment products saw $55 million outflows last week, with Bitcoin leading the way with $42 million outflows.
Other cryptocurrencies such as Ethereum recorded outflows of $9 million, while Polygon, Litecoin, and Polkadot saw outflows of $0.9 million, $0.6 million, and $0.5 million, respectively. On the other hand, XRP and Cardano saw increases in their respective inflows of $1.2 million and $0.1 million.
In terms of region, Canada had the most outflows at $35.9. million, and Germany followed with $11 million.
BTC price falls below $26,000 support | Source: BTCUSD On Tradingview.com
Rise in Bitcoin outflow
The outflow of Bitcoin from exchanges suggests that major investors may be losing confidence in the popular cryptocurrency. One factor fueling this outflow is speculation that the SEC cannot actually approve requests for spot Bitcoin ETFs in the US As a result, total assets under management (AuM) fell 10% to close the week at $32.3 billion.
The speculation comes as the SEC has delayed making a decision on Spot Bitcoin ETF filings multiple times. Each delay casts further doubt on whether they will ever approve one, and an outright rejection by the SEC will most likely result in Bitcoin’s price falling to $20,000 and digital asset investment products recording more outflows.
At the time of writing, Bitcoin is trading at $26,053 and is down 11.09% in the space of seven days.
Featured image of Unsplash, chart from Tradingview.com