Bitcoin, Ethereum See $207M Weekly Outflows As Institutions Turn Bearish On Crypto

Outflows from digital asset investment products hit a weekly record of $207 million as market sentiment remains bearish.

What Happened: According to CoinShares Digital Asset Fund Flows weekly report, Bitcoin BTC/USD alone saw outflows of $107 million over the week, while Ethereum ETH/USD saw $39 million in outflows.

The outflows from crypto investment products began mid-December and have amounted to $465 million over the course of the month.

CoinShares noted that blockchain equities also bore the consequences of the market-wide negative sentiment and had outflows totaling $10 million over the week.

Meanwhile, some altcoins like Solana SOL/USD and XRP XRP/USD saw modest inflows of $500,000 and $800,000 respectively.

According to on-chain analyst Willy Woo, BTC will always have to “fend off capital rotation” into newer altcoins.

“Bitcoin being the oldest will outlast others, people feel safe hodling it. Set and forget. Alt-coins are new sources of money, under Cantillion, those closest to the money gain the most. The early investors get richer. It's a swing in and out trade (and VC games),” Woo wrote on Twitter.

“This means there's a constant incentive to invest in new coins; investors will chase the Cantillion Effect. We can see this in family offices already where they allocate into ETH and stuff like SOL to get alpha,” he added.

Price Action: As of Wednesday morning, Bitcoin was trading at $43,863.11, gaining 4.67% in the last 24 hours. Ethereum was trading at $3,373.76, up by 7.56% over the same period.

Related Link: Bitcoin, Ethereum RSIs At 2-Year Lows — Here's What Experts Are Watching Out For