Grayscale Leads Institutional Offloading of Crypto Products As $942,000,000 Leaves Markets: CoinShares

Digital assets manager CoinShares says institutions dumped a new weekly record of $942 million in crypto products last week.

In its latest Digital Asset Fund Flows report, CoinShares says the new record outflow breaks a seven-week run of record-setting inflows.

“Digital asset investment products saw record weekly outflows totaling US $942 million, the first outflow following a record 7-week run of inflows totaling US $12.3 billion.”

Source: CoinShares

According to CoinShares, market uncertainty has made investors more hesitant, as evidenced by lower inflows into exchange-traded funds. Grayscale led the outflows with over $2 billion leaving its products last week.

“We believe the recent price correction led to hesitancy from investors, leading to much lower inflows into new ETF issuers in the US, which saw US $1.1 billion inflows, partially offsetting incumbent Grayscale’s significant US $2 billion outflows last week.”

CoinShares also says that, except for Brazil and Canada, the negative sentiment was shared worldwide.

“Poor sentiment was not just focussed on the US, with Sweden, Switzerland, Hong Kong and Germany seeing outflows of US $37 million, US $25 million, US $35 million and US $4 million respectively. However, Brazil and Canada both saw inflows totaling US $9 million and US $8.4 million respectively.”

Bitcoin (BTC), per usual, took the brunt of the outflows, losing $904 million last week.

Ethereum (ETH), Solana (SOL) and Cardano (ADA) products saw outflows of $34 million, $5.6 million, and $3.7 million, respectively.

But not all altcoins performed so poorly.

Says CoinShares,

“The rest of the altcoin space fared well, seeing a net inflow of US $16 million, most notable were Polkadot (US $5 million), Avalanche (US $2.9 million) and Litecoin (US $2 million).”

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