- Institutions took profits after 11 straight weeks of inflows totaling $16B in 2023, with $16M outflows this week.
- Trading surged to over $36B despite outflows, led by $328M from BTC and $44M from ETH products. Altcoins saw inflows.
- Outflows indicate short-term profit taking, not a change in institutional sentiment. Inflows continued in some regions and volume surged, showing ongoing bullishness.
Institutions are taking profit according to CoinShares’ latest institutional report, ending 11 consecutive weeks of inflows into crypto investment products. This week saw $16 million in outflows as investors cashed in on gains from the recent crypto rally.
Trading Activity Surges
Trading surged to over $36 billion this past week, more than double the 2023 average of $16 billion. Bitcoin saw the largest outflows at $328 million from BTC investment products, despite a very bullish year so far for institutional Bitcoin accumulation.
Ethereum also saw significant selling from institutions, with $44 million flowing out of ETH products. Altcoins went against the trend, with inflows into Solana, Cardano, XRP, and Chainlink funds.
Profit Taking, Not Change in Sentiment
According to CoinShares’ James Butterfill, the selling came predominantly from U.S. investors, with $18 million leaving U.S. crypto funds. Inflows continued in Germany and Switzerland.
Butterfill believes this activity indicates profit-taking rather than a change in institutional sentiment on crypto as an asset class. After 11 straight weeks of inflows totaling $16 billion in 2023, some selling was due after the recent crypto price surge.
Institutions Remain Bullish on Crypto
In summary, short-term profit-taking brought an end to 11 consecutive weeks of institutional inflows into crypto investment products. But continued inflows in certain regions and for altcoins show ongoing bullishness on crypto among institutions. The surge in trading volume also demonstrates crypto’s strength even during a period of overall outflows.
