Institutional Investors Are Exiting Bitcoin and These 2 Altcoins: Buying Them!

According to the CoinShares report, crypto asset investment products saw an outflow of a total of US$ 584 million for the second consecutive week, resulting in a total decrease of US$ 1.2 billion. This is believed to be a reaction to pessimism among investors regarding the prospects for a rate cut by the FED this year. Bitcoin became the main focus, seeing an outflow of US$630 million, but the recent negative sentiment did not cause investors to add to short positions.

CoinShares report is out: Pay attention to Bitcoin and those cryptos

According to CoinShares’ weekly crypto inflow and outflow report, crypto asset investments saw a total outflow of US$584 million for two consecutive weeks and a total decline of US$1.2 billion. Bitcoin was the main focus with an outflow of US$630 million, but the recent negative sentiment did not cause investors to add to short positions. Multi-asset works saw inflows of US$98 million, indicating that investors are viewing weakness in the altcoin market as a buying opportunity.

Multi-asset works saw inflows of US$98 million, indicating that investors are viewing weakness in the altcoin market as a buying opportunity. According to the weekly crypto asset fund flow report prepared by the US-based financial services company CoinShares, crypto asset investment products saw a total outflow of 584 million US dollars in a two-week period. This is one of the biggest breakouts since late May.

Fed expectations play an important role

According to the report, the reason behind the outflows lies in investors’ decreasing expectations of the Fed to cut interest rates this year. Additionally, last week saw the lowest volume traded in ETPs globally since the launch of US ETFs in January, with only US$6.9 billion transacted during the week. The report also stated that, according to geographical distribution, the USA had the largest outflow with 475 million US dollars, but Canada also experienced a significant outflow with 109 million US dollars. In contrast, Switzerland and Brazil bucked the trend, seeing inflows of US$39 million and US$48.5 million respectively.

Although Bitcoin came into focus with an outflow of US$630 million, the recent negative sentiment has not caused investors to turn to short positions, with short Bitcoin seeing an outflow of US$1.2 million. Ethereum, on the other hand, could not escape the negative sentiments with an outflow of US$ 58 million. However, several altcoins have seen inflows following recent price declines. Among these, the most notable ones were Solana, Litecoin, and Polygon, with $2.7 million, $1.3 million, and $1 million, respectively. However, it did not go unnoticed that Cardano (ADA) also experienced a boom.

The CoinShares report reveals that investors’ expectations in the cryptocurrency market have decreased. This may indicate a decline in the cryptocurrency market. However, as highlighted in the report, the lack of investor entry into short Bitcoin situations also indicates that not all investors in the market are pessimistic.