Bitcoin's Institutional Exit: Altcoins Have Started to Move as Well

In the last week, there was significant volatility in digital asset investment products. Bitcoin (BTC) and many other cryptocurrencies experienced a total outflow of 2 billion dollars. According to CoinShares data, this outflow is the largest weekly outflow recorded since February, and the weekly loss in the digital asset market has reached its sharpest level of the year.

One of the reasons behind this outflow is the uncertainties in monetary policy and the sales by large investors. In particular, while an outflow worth 3.2 billion dollars occurred in the last three weeks, the total value of managed assets declined from 264 billion dollars in October to 191 billion dollars, representing a decrease of 27%.

Regional analyses provide a clearer picture of this phenomenon. The U.S. accounted for 97% of the outflows, recording a negative flow of 1.97 billion dollars. In other regions, Switzerland experienced an outflow of 39.9 million dollars and Hong Kong 12.3 million dollars, while Germany showed a positive divergence with an inflow of 13.2 million dollars.

Outflows from Bitcoin this week reached 1.38 billion dollars, representing 2% of managed assets. Ethereum (ETH) displayed a rather negative picture, recording an outflow of 689 million dollars last week, which corresponds to 4% of the total managed assets. Solana (SOL) and XRP closed the week with more limited outflow figures, recording 8.3 million dollars and 15.5 million dollars in outflows, respectively.

The search for safe havens among investors has increased the shift towards multi-asset ETPs, with a total inflow of 69 million dollars to these products in the last three weeks. During the same period, a significant demand was observed for short Bitcoin ETPs, reflecting the market's bearish expectations.