Institutional investors have pulled $150M from crypto in the last two weeks
The worsening situation in Ukraine, fluctuating crude oil prices, and the US Federal Reserve's interest hike have spooked investors.
Institutional investors and funds that had put money into cryptocurrencies have withdrawn $157 million over the last two weeks.
According to a CoinShares report, however, the bleeding is subsiding as only $47 million was withdrawn in the last week, compared to $110 million the week before.
Before the last 14 days, crypto markets had seen seven continuous weeks of net increased inflows by institutional investors, such as Grayscale and CoinShares, who compiled the report themselves.
The largest withdrawals in the last week were in Bitcoin and Ethereum, with funds withdrawing $32.8 million and $16.6 million, respectively. Interestingly, smaller coins by market value such as Solana, Polkadot, and Ripple saw overall inflows in investment over the last seven days.
North American investors constitute 98 percents of crypto withdrawals in the last week, with European funds largely remaining even throughout. Besides, the Russia-Ukraine crisis and fluctuating crude oil prices, North American investors would have been spooked by the Federal Reserve increasing interest rates for the first since 2018.
However, despite a negative couple of weeks, institutional interest in cryptocurrencies remains strong. From the available data, it can be noted that total assets under management for these crypto-focused institutional funds remain at an astonishing $53,695 million.
Edited by Suman Singh