Bitcoin, the world’s largest cryptocurrency, has dropped by nearly 20% in the last 7 days. BTC investment products saw record outflows last week as $98 million worth of investment left Bitcoin products.
According to the latest weekly digital asset report published by CoinShares, investment products related to altcoins attracted $48 million last week. Contrasting to Bitcoin, Ethereum remained the most popular cryptocurrency among institutional investors as ETH investment products saw inflows of approximately $27 million last week.
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Cardano (ADA) and Polkadot (DOT) saw a jump in weekly inflows as ADA and DOT attracted $6 million and $3.3 million worth of inflows, respectively. Cardano has increased by more than 30% in the last 7 days while Polkadot has gained nearly 12% within the last week. Bitcoin took a major hit from the recent announcements by Tesla and Elon Musk. The world’s largest digital currency touched $42,000 on Monday, the lowest level since February 2021.
“Outflows were solely from Bitcoin investment products which totaled $98 million or .02% of total assets under management. While small, this marks the largest outflow we have recorded. Ethereum continued to see strong inflows totaling $27 million last week. The month of May marking the first time that there has been more investment product trading volumes in Ethereum relative to Bitcoin,” CoinShares mentioned in the report.
Bitcoin Investment Products
During the first week of May 2021, cryptocurrency investment products attracted $373 million. Bitcoin remained the preferred choice of investors during the first 7 days of this month. The latest outflows came after institutional investors started diversifying their portfolios. Another major reason behind the recent outflows is the performance of altcoins. Ethereum, Cardano, Polkadot and XRP have increased significantly in the last 7 days while Bitcoin is down by nearly 20% for the same period. As of writing, the world’s largest cryptocurrency is trading above $45,000 after posting a small recovery of approximately 4% in the last 24 hours. The total market cap of BTC stands at around $840 billion.