The value of cryptocurrencies such as Bitcoin and Ethereum hit all-time highs during the past week. Despite the recent improvement, institutional investors are still divesting themselves of digital asset products to almost $63 million, indicating that a gloomy market outlook prevails.
According to research conducted by CoinShares, Ethereum continued to draw most of its investor capital from the company’s digital asset funds weekly. Specifically, during the previous week, the overall sum of funds left the ETH-based commodities was around $61.6 million.
Compared to other major crypto assets, Ethereum-based goods have seen the biggest amount of capital flight this year, amounting to 360 million dollars. The analysis found that US$63 million was withdrawn from digital asset investment products for the fifth week. The report is particularly noteworthy in light of the negative sentiment suggested by the influx of funds into short-bitcoin investment products the previous week.
Although weekly volumes have climbed to a total of $1 billion US dollars, they still account for 46% of the annual average. The withdrawals have been quite low, amounting to $99 million US dollars over the previous five weeks. Despite the recent spike in price, Friday saw the highest number of withdrawals of any day thus far.
Canada and the United States were the principal destinations for the outflowing cash, with both countries suffering a total loss of $10 million and $70 million, respectively. On the other side, Europe raked in a whopping $7 million in net new money, making it the area with the greatest performance overall.
Last week, institutional investors took around $13 million out of Bitcoin investment products. There is already more than $18 billion worth of Bitcoin assets managed by companies specializing in crypto asset management. One million dollars’ worth of fiat currency was invested in alternative cryptocurrencies, with Polygon and Cardano leading the way with $400,000 and $200,000, respectively.
Despite the imminent upgrade, Ethereum has been one of the digital currencies that has seen the greatest volatility recently. The world’s second most valuable cryptocurrency asset achieved a peak of $1,780 and then a low of $1,508 throughout the preceding week.
According to research conducted by CoinShares, investors withdrew a total of US$62 million from exchange-traded funds over the previous week, with Ethereum serving as the primary target. The fact that this has occurred despite the greater likelihood that the Merge will take place as planned (which is currently expected to occur on or around September 15) may suggest that investors are still concerned that something may not go as planned.