Weekly outflows from Ethereum investment products hit an all-time high.

CryptoCurrency

Last week, institutional investors continued to sell cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), however, the scale of the withdrawals was far lower than in previous weeks, indicating that the worst of the market sell-off has passed.

According to CoinShares’ weekly fund flows report, the fund has lost $21.4 million in the last seven days, compared to a $94 million outflow the week before. With a weekly drop of $12.7 million, Ether products saw their highest weekly loss. In recent months, funds devoted to ETH have outperformed Bitcoin, indicating pent-up demand for the second-largest cryptocurrency.

In four of the last five weeks, institutional investors have been net sellers of digital assets. According to CoinShares data, the largest weekly outflow was $97 million in the week ending May 24.

“While sentiment has weakened over the last month investors, on the whole, remain committed given the magnitude of inflows seen this year,” the report says, alluding to the fact that crypto investment funds have raised $5.8 billion this year alone. That’s within 13% of the $6.7 billion inflows registered in all of 2020.

During the peak of the bull market earlier this year, institutional managers’ crypto holdings hit new highs, according to Cointelegraph. Following the most recent episode of market volatility, many investors have started taking gains.

The weekly fund flows data, on the other hand, implies that market mood is steadily improving. The Bitcoin Fear & Greed Index, for example, has recovered from severe lows despite staying pessimistic. Meanwhile, Bitcoin’s price soared past $41,000 on Monday, a 12 percent increase, as markets sought to reclaim important critical levels. Ether’s price also increased by 9% to $2,566.

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