Seasonality Affecting Bitcoin the Same as Other Asset Classes, Longest Consecutive Outflows Since Jan 2018: CoinShares Report

However, this time, outlaws from Bitcoin investment products are proportionally far less, with only 0.2% of assets under management (AUM) compared to nearly 5% in the 2018 bear market.


While the Bitcoin price is showing strength, the institutional money that went away in May hasn’t made its comeback yet. But as the well-known financial-world adage goes, “Sell in May and go away, and come on back on St. Leger's Day,” which falls in September, may come back soon.

By this adage, the crypto market still has a way before institutional money makes its way back in, and the way the price has been recovering, it could just so happen that we have broken 2021 ATHs, which has started happening with Solana (SOL) and Terra (LUNA).

For now, though, the digital assets investment products had a 6th consecutive week of outflows. The outflow of $22 million this time brings the total 6 week run of outflows to $115 million.

“Despite the continued negative sentiment, it comes at a time of low investor participation likely due to seasonal effects as seen in other asset classes,” noted CoinShare in its report.

This, however, now marks the longest run of consecutive outflows since January 2018, but proportionally far less. This time, outlaws only represent 0.2% of assets under management (AUM) compared to nearly 5% in the 2018 bear market.

Volume is also down at $3.1 bln per week in investment products, down from $7 bln per week in May.

In contrast, the uptrend in the market has resulted in the AUM rising 10% week-on-week to $55 bln.

Bitcoin (BTC), yet again, continues to be the main target of these outflows, accounting for almost the entire $22 million last week.

Ethereum (ETH) saw minor outlaws totaling $1.1 million, and akin to this, Binance recorded $0.9 mln of outflow.

Multi-asset investment products, which, unlike Bitcoin, continued to draw investors’ attention, also saw outflows this time. This happened for the first time since June 2020, but they were minor at just $0.3 mln.

When it comes to inflows, a few crypto assets still managed to attract some, including Cardano (ADA), Polkadot (DOT), and Stellar (XLM) at $1.3 mln, $0.4 mln, and $0.4 mln, respectively.

When it comes to asset managers, 21 Shares had the highest at just $3.5 mln, Grayscale $0.3 mln, Bitwise $0.1 mln, and others $3 mln, as per the data.

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