CoinShares’ latest report reveals that institutional crypto investment products experienced minor outflows in the past week. According to the “Digital Asset Fund Flows Weekly” report published on April 15, institutional investors reduced their exposure to digital assets, resulting in total outflows of $126 million. Once again, Bitcoin (BTC) accounted for the majority of movement, with $110 million in outflows. CoinShares attributed this outflow to investor hesitancy following the loss of positive momentum. In the month leading up to these outflows, crypto funds saw inflows of $520 million, with over 99% of that going into Bitcoin.
Weekly trading volumes in investment products also saw an increase from $17 billion to $21 billion in the week ending April 12, according to the report. CoinShares’ head of research, James Butterfill, commented on the data, stating that it followed heavy selling due to geopolitical tensions and uncertainties surrounding Federal Reserve rate cuts in June. Between April 8 and April 12, institutions withdrew nearly $82 million from spot Bitcoin trades ETFs, continuing the exodus from Grayscale’s GBTC.
In terms of regional flows, only Australia, Brazil, and Germany experienced inflows of $1.6 million, $3 million, and $28.6 million, respectively. The largest outflows came from the United States, with $145 million.
While Bitcoin’s price remains up on longer time frames, it has been characterized by high volatility in recent days. On Monday, Bitcoin fell sharply from $66,008 to an intraday low of $63,940 at the Wall Street open.
CryptoQuant analysts believe that there is a high probability of further price correction for Bitcoin. They cite factors such as high average 30-day funding rates, resistance from the current all-time high, and a market setup that allows large players to establish large positions.
The recent drop in BTC prices followed the approval of spot Bitcoin ETFs in Hong Kong. However, the launch of these ETFs has not occurred as expected, with possible trading set to begin next week. Analyst Eric Balchunas warned against expecting significant flows from the HK spot Bitcoin ETFs due to the small size of the market compared to the U.S. ETF sector.
The combination of reduced investor sentiment around HK spot Bitcoin ETFs and geopolitical tensions in the Middle East is likely to push BTC prices lower until after the Bitcoin supply halving.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.