Institutions pull $168,000,000 from bitcoin and crypto markets as hopes of ETF approval are pushed back: CoinShares

Digital asset manager CoinShares says crypto markets last week suffered their biggest outflows since March.

In its latest Digital Asset Fund Flows Weekly Report, CoinShares notes that digital assets lost $168 million last week, continuing a two-week streak of outflows.

“Digital asset investment products saw outflows totaling $168 million, the largest outflow since US authorities crackdown on exchanges in March 2023. Outflows in August of this year now totaled $278 million in one go Exceptionally low-volume market that trades investment products in the U.S. “$1.3 billion for the week, 16% below yearly average.”

Source: CoinShares

According to CoinShares, the negative sentiment comes on signs that a spot bitcoin (BTC) exchange-traded fund (ETF) approval is likely to take longer than hoped.

“This negative sentiment, we believe, is due to increasing acceptance that a spot ETF for Bitcoin in the US is likely to take longer than many are expecting, with the SEC recently announcing delays.”

However, on Tuesday morning it was reported that Grayscale had won its lawsuit against the Securities and Exchange Commission (SEC), with the court agreeing that it was wrong for the SEC to reject Grayscale’s ETF application.

As usual, BTC took the brunt of the outflows, losing $149 million.

“Nevertheless, net inflows for the year remain positive at $265 million. Many investors continue to sell their short positions and recorded outflows of $4 million last week, with outflows over the last 18 weeks accounting for 89% of total assets under management (AuM).”

While Ethereum (ETH) and Binance Coin (BNB) products lost $16.8 million and $0.2 million, respectively, other altcoin products fared better. Multi-asset products, i.e. those investing in more than one crypto asset, saw inflows of $1.2 million. XRP, Litecoin (LTC), Cardano (ADA), and Solana (SOL) products saw inflows of $0.5 million, $0.4 million, $0.2 million, and $0.1 million, respectively U.S. dollar.

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