Institutions continue to sit on the fringes of the Bitcoin markets, with the volume of BTC investment products falling to just 38% of the annual average (YTD) over the past week.
According to CoinShares’ July 19 Digital Asset Fund Flow Weekly report, Bitcoin investment products generated around $ 3.9 billion worth of daily trades from July 12 through July 16.
However, the report’s authors fail to conclude that the decline in trading activity is cause for concern, as CoinShares notes that Bitcoin has seen “similar seasonal slumps in volume over the summer months in recent years”.
Institutional Bitcoin products also saw $ 10.4 million outflows this week, with investors now reducing their BTC exposure on a net basis for nine of the last 10 weeks. Even so, the volume of outflows in July decreased compared to the last few months.
The largest outflow of Bitcoin products since records began occurred between May 10 and May 14 – when institutional investors dragged $ 98 million out of the markets.
Flows by provider: CoinShares
While institutional investors continued to reduce their exposure to BTC, Ether (ETH) investment products saw inflows for a third straight week last week.
About $ 11.7 million went into ether products, bringing YTD inflows to $ 973 million for 2021. Bitcoin products, however, dominate the sector of institutional digital asset products according to YTD-Flows and have received 4.1 billion US dollars from investors since the beginning of the year.
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Cardano (ADA) products saw the second largest inflows after Ether, with investors adding $ 400,000 in ADA exposure. Ripple (XRP) and Polkadot (DOT) tracking products also saw inflows of $ 300,000 each, followed by Stellar (XLM) at $ 200,000.
Despite the recent bullish move, inflows into multi-asset products fell to just $ 100,000 for the week.