Institutional Investors Seen Dumping Crypto Ahead Of Market Crash

The crypto market crash is forcing institutional investors to sell their crypto holdings. The crypto market cap has now dropped to $961.83 billion, losing almost $1.5 trillion since November. According to CoinShares‘ latest report, the digital asset investment products outflow was $102 million last week. Bitcoin outflows of $57 million and Ethereum outflow of $41 million were recorded last week amid the Fed’s monetary tightening and market-wide selloffs.

Institutional Investors Sold $102 Million Crypto Holdings

The digital asset investment products flows have been slow due to monetary tightening, with outflows continuing last week due to rising inflation and stETH depeg from ETH. Interestingly, the outflows were majorly recorded in Americans, with $98 million in total. Meanwhile, outflows in Europe were just $2 million.

3iQ, Purpose Investments, CoinShares XBT, and ETC Group witnessed outflows of 72.1, 43.4, 11.3, and 6.2 million in the last week, respectively. Meanwhile, ProShares, CoinShares Physical, and 21Shares saw inflows of 24.2, 19.1, and 4.5 million, respectively. Also, the institutional leader Grayscale has recorded just 0.3 million in the last week.

The institutional investors’ interest in Bitcoin and Ethereum dropped significantly last week. Bitcoin saw outflows totaling $57 million last week, with month-to-date outflows of $91 million. The total assets under management for short-bitcoin investment products remain much lower at $55 million against $27 billion for long-long bitcoin investment products.

The delay of Ethereum Merge and stETH-ETH depeg caused massive selling last week. Institutional outflows totaling $41 million were seen last week, bringing total year-to-date outflows to $387 million. Moreover, the total assets under management (AUM) has declined to $8.7 billion from its high of $23 billion in November.

Furthermore, multi-asset investments products witnessed outflows of $4.7 million last week. Investors also didn’t buy altcoins including Solana, Cardano, XRP, and others as prices continue to fall amid pressure.

Bitcoin and Ethereum Fall to a Year-Low

Bitcoin (BTC) and Ethereum (ETH) prices have fallen to their year-low price today. The BTC price now trading at $23,706, down 14% in a day. Whereas, ETH price has fallen 17%, with the price currently trading at $1217. The largest cryptocurrencies are facing liquidation risks as the crypto market has crashed to its lowest.

Institutional Investors continue to sell their crypto holdings in order to buy at low rates.