Report Shows Institutions Are Selling Crypto Amid Ongoing Geopolitical Uncertainty

Crypto-related investment products have suffered outflows of over 100 million in the past seven weeks amid ongoing geopolitical uncertainty, as stated in a recent report from digital asset manager CoinShares.

Institutions Sell Crypto Amid Regulatory Uncertainty

It was only little more than a month ago that Crypto News Australia reported how institutional adoption had accelerated following BlackRock’s decision to offer crypto trading services to its clients, but now it seems it has taken a 180-degree turn amid investors’ fear regarding the current geopolitical scene in Europe and regulatory uncertainty.

Given there has been little price response and that outflows of US$30 million were also seen in Europe, it highlights [that] the reasons are unclear. Regulatory concerns and geopolitics remain at the forefront of investors’ concerns for digital assets.

CoinShares report

Bitcoin and Ethereum Among the Most Affected Assets

At least 80 percent of the outflows come from North America-based companies, with Grayscale, Purpose, and ProShares leading the board. The exact reasons remain unclear, but CoinShares said it’s likely a response to US President Joe Biden’s latest executive order, which calls on the government to examine the benefits and risks of cryptocurrencies.

Flows by asset. Source: CoinShares

Bitcoin (BTC) and Ether (ETH) were the most affected cryptocurrencies, with outflows of US$70 and US$51 million, respectively. The altcoin market also had its share of inflows – mainly Solana (SOL), Ripple (XRP), and Polkadot (DOT).

Solana, Ripple and Polkadot saw minor outflows totalling US$0.3 million, US$0.7m and US$0.9m respectively, while Cardano and Litecoin saw minor inflows of US$0.2 million.

CoinShares report

Blockchain equity and multi-asset investment products have also taken a hit. As per the report, inflows amounted to US$12 million and US$4.1 million respectively.

José Oramas

José Oramas

José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.

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