Ethereum

Bitcoin

April

James

<p>Institutional funds specializing in cryptocurrencies continue to face capital outflows for the fifth consecutive week, according to the latest report from CoinShares. With a withdrawal of $32 million last week, the total outflows now amount to $232 million. Despite a decrease compared to previous weeks, institutional investors remain cautious towards cryptos. Let’s explore the reasons behind this trend.</p><div class="thumbnail post-cover-image"><img src="https://www.cointribune.com/app/uploads/2023/05/retrain-fond-crypto-en-cascade-1024x683.png" srcset="https://www.cointribune.com/app/uploads/2023/05/retrain-fond-crypto-en-cascade-1024x683.png 1024w, https://www.cointribune.com/app/uploads/2023/05/retrain-fond-crypto-en-cascade-300x200.png 300w, https://www.cointribune.com/app/uploads/2023/05/retrain-fond-crypto-en-cascade-768x512.png 768w, https://www.cointribune.com/app/uploads/2023/05/retrain-fond-crypto-en-cascade.png 1200w" sizes="(max-width: 1024px) 100vw, 1024px" class="post-cover-image--img" alt="Bitcoin, crypto outflows"></div><div class="my-4"></div>



<h2 id="h-the-outflow-trend-persists">The outflow trend persists</h2>



<p>As the <a href="https://www.cointribune.com/analyse-technique-du-22-mai-perspectives-de-la-semaine-sur-le-bitcoin-btc/" target="_blank" rel="noreferrer noopener">cryptocurrency market</a> experiences a stagnant phase, with Bitcoin struggling to surpass the $30,000 mark, investors are displaying a negative sentiment.</p><div class="my-4"><div class="ads ">
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<p>According to a recent <a href="https://blog.coinshares.com/volume-132-digital-asset-fund-flows-weekly-report-6877d104bbeb" target="_blank" rel="noreferrer noopener">CoinShares report</a> on crypto asset fund flows, crypto-focused investment funds have recorded a series of capital outflows for the fifth consecutive week. </p>



<p>Between May 15th and May 19th, these funds witnessed a capital outflow of $32 million. Bringing the total to $232 million. Despite a slight decrease compared to previous weeks, this trend still evokes a certain reluctance among institutional investors, according to James Butterfill, Head of Research at CoinShares.</p>



<figure class="wp-block-image size-full"><img decoding="async" width="440" height="490" src="https://www.cointribune.com/app/uploads/2023/05/2.png" alt="" class="wp-image-604264" srcset="https://www.cointribune.com/app/uploads/2023/05/2.png 440w, https://www.cointribune.com/app/uploads/2023/05/2-269x300.png 269w" sizes="(max-width: 440px) 100vw, 440px"><figcaption class="wp-element-caption"><a href="https://twitter.com/jbutterfill/status/1660590477651976193?s=20" target="_blank" rel="noreferrer noopener">https://twitter.com/jbutterfill/status/1660590477651976193?s=20</a></figcaption></figure>



<p>Exchange volumes have also declined, reaching $900 million for the week, representing a 40% decrease compared to the year’s average. This trend has also been observed on centralized exchange platforms. Where volumes hit their lowest level since late 2020, amounting to $20 billion for the week.</p>



<p>This trend persists, with Bitcoin funds experiencing the highest number of outflows, totaling $33 million. In comparison, Ethereum funds saw smaller outflows, with only $1 million.</p>



<h2 id="investor-geographic-preferences">Investor geographic preferences</h2>



<p>Regarding the geographic distribution of fund outflows, Germany takes the lead with $24 million, accounting for 73% of the total. Institutional funds based in Switzerland also recorded outflows amounting to $3.3 million. </p>



<p>These coincided with the approval of European legislation on cryptocurrencies, <a href="https://www.cointribune.com/regulation-crypto-en-europe-le-reglement-mica-approuve-par-les-etats-membres/" target="_blank" rel="noreferrer noopener">MiCA</a>. Additionally, US funds recorded an outflow of $5.5 million, while Canada, a crypto supporter, saw an inflow of $2.2 million.</p>



<p>During the five-week period from April 21st to May 19th, the price of Bitcoin experienced a decline of approximately 4.8%. It is now stabilized at $26,842. Currently, at the time of writing, the price of <a href="https://www.cointribune.com/bitcoin-signal-vente-hash-ribbon/" target="_blank" rel="noreferrer noopener">BTC stands at $27,309</a>, according to data provided by CoinMarketCap.</p>

Crypto: Institutional funds experiencing lots of outflows

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