Institutional Bitcoin Funds Lose $33M Over The Week As Ethereum Funds Gain Market Share

The first week of August may have sparked a market-wide rally in crypto, but institutional outflows from Bitcoin BTC/USD focused funds still persisted.

What Happened:  Bitcoin gained 19% over the past seven days to trade above $45,400 at the time of writing, but institutional Bitcoin funds saw $33 million in outflows over the past week, according to data from CoinShares.

Meanwhile, Ethereum ETH/USD recorded $2.8 million inflows over the past week. According to CoinShares, the leading altcoin is once again rapidly gaining market share and now represents 26% of investment products.

CoinShares also reported that the total investment products assets under management are now back $50 billion, which is the “highest level since mid-May.”

“We have seen the number of funds/investment products listed accelerate recently with a record 37 launched this year compared to the previous high of 30 seen in 2018,” stated the Digital Asset Fund Flows Weekly report.

Why It Matters: This week’s data confirms a trend that has been predicted by industry observers, including Goldman Sachs Group Inc GS, for several months now.

A recent report from Coinbase Global Inc’s COIN institutional team revealed that Ethereum had outperformed Bitcoin and several other benchmark assets.

“Many of our largest institutional clients, including hedge funds, endowments, and corporates, increased or added first-time exposure to ETH in H1, believing the asset has long-term staying power tantamount to BTC’s while playing a differentiated role in their portfolios,” stated the report.

Price Action: At press time, Ethereum was trading at $3,147 after gaining 1.26% over the past 24-hours. Meanwhile, Bitcoin was trading just 0.60% lower at a price of $45,555 over the same time period.

Read also: Why Long-Term Investors Are Buying Bitcoin Below This Yellow Line