Some institutional investors take profits as Bitcoin withdraws

A new report from crypto fund provider CoinShares has indicated that some institutional investors have been realizing profits during BTC’s recent consolidation.

CoinShares’ weekly digital asset flow report notes $ 85 million in outflows of institutional crypto products last week, asserting that the data suggests “some investors continue to take profits after [BTC’s] strong price appreciation. ”

The report noted a rising US dollar (trade-weighted), noting that the USD index is “typically inversely related to Bitcoin prices,” and could explain why some investors are taking profits at the levels current.

The company also reported a modest outflow of investment products originating from Ethereum, with $ 3 million leaving the markets.

Despite the profits, institutional inflows remain strong, with $ 359 million flooded with crypto investment products this week. Institutions still seem focused almost single-mindedly on BTC, with Bitcoin products representing all but 1% capital flows per week.

CoinShares notes that crypto inflows have returned to their levels before Christmas, following the 97% fall over three weeks seen after the holiday break. Daily volumes are currently up more than 450% year-on-year.

Institutional products currently represent 6% of aggregate Bitcoin volume – down from 14% at the start of the month.

Much has been lately of the growing institutional appetite for crypto, with large global companies recently filling their treasures with BTC.

After holding more than 11 million BTC futures trading in 2020, the Chicago Mercantile Exchange announced last month that it plans to launch Ethereum’s cash-settled futures contracts in early February, pending regulatory approval.

On January 20, Ninepoint Partners filed its final prospectus for the Bitcoin Trust conditionally approved by the Toronto Stock Exchange.