Analysts at the asset management company CoinShares found out that the interest of institutional investors in cryptocurrencies has decreased by the end of the past week.
The team's report says that last week ending March 27, investments in crypto-focused products totaled just $ 21 million, the lowest since October 2020, when Bitcoin was trading below $ 14,000.
The weakening of the activity of institutions in the crypto market has led to the retreat of the largest digital currencies. At the end of last week, Bitcoin and Ether fell sharply.
The daily trading volume of digital assets was only $ 788 million. Researchers noted that before that, on average, the average daily amount of transactions in the market exceeded $ 900 million in 2021.
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Analysts linked the current trend to the transition of large investors to profit-taking.
However, the CoinShares report at the same time notes that despite the weakening of interest, financial institutions are driving the growth of the digital asset market.
Only one company, Grayscale, now manages cryptocurrencies totaling up to $44.1B. The lion's share of institutional funds is placed in the giant's bitcoin and Ethereum trusts ($ 37.31 billion and $ 5.583 billion, respectively).