Institutionals leave cryptosphere despite Bitcoin rally

by in Cryptocurrency News

Investor

Fourth-week institutional investors withdrawing funds from crypto-focused products.

Moreover, the capital outflow is observed against the background of a sharp strengthening of the bitcoin rate. Let us remind you that last week it was unable to try to gain a foothold above $40,000, but due to the lack of support, it could not hold onto the positions it had won.

On Tuesday, August 3, BTC is trading in the region of $38,500. Bitcoin capitalization per day decreased by about 3.31% to $721,054 billion.

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Over the past seven days, institutions have withdrawn about $19.5 million from products focused on digital currencies. The losses were partially offset by small investments in funds tied to a basket of cryptocurrencies.

CoinShares analysts believe that the capital outflow from bitcoin products amid market growth was due to a change in investor tactics. Many institutions took advantage of the rally to lock in profits.

To date, in annual terms, the volume of investments in funds focused on the crypto sphere is more than $4.1 billion. Institutions have withdrawn $9.5 million from Ethereum funds.