Bitcoin’s six-week hot streak ends as institutions turn to Ethereum

Bitcoin outflows reached $53.1 million last week – meaning that for the first time in six weeks, more funds flowed out of digital asset investment products than in.

Profit-taking is largely to blame, especially considering that there were few macroeconomic triggers that could affect BTC’s price, says a new report from investment firm CoinShares.

And that suggests staying above the psychologically significant $30,000 threshold could be a tough nut to crack for bulls. As of Monday morning, Bitcoin fell toward $27,000 and down 9% from last week, according to CoinGecko.

Overall, digital asset investment products saw a total outflow of $30 million in the seven days to April 21 – with CoinShares XBT, ProShares and 3iQ the hardest hit providers. The providers manage all exchange-traded products related to cryptocurrencies, an indirect way for institutional investors to gain exposure to crypto markets without actually holding it.

But the devil is in the details. According to CoinShares head of research James Butterfill, there is one cryptocurrency bucking the trend in a big way.

After basking in the glow of the successful “Shapella” upgrade, Ethereum actually enjoyed $17 million in inflows last week – putting it well ahead of major altcoins, such as Solana, Cardano, XRP and Litecoin, which were largely flat.

This indicates that investors feel confident that validators on Ethereum’s proof-of-stake network can withdraw ETH if they wish.

Butterfill also revealed that inflows to ETH-based funds came exclusively from Europe, which is fresh from approving much-welcomed landmark cryptocurrency legislation.

All this comes as regulatory uncertainty in the US casts a long shadow over US crypto firms – with the SEC’s intervention potentially leaving investors on the sidelines.

There was also a clear continental divide when it came to Bitcoin.

“Regionally, the gain was almost entirely from North America, which saw outflows totaling $54 million,” Butterfill wrote. “This was offset by continued upbeat sentiment in Germany which saw inflows totaling $29 million.”

This optimism in Germany has undoubtedly been fueled by the country’s friendly tax regime, which states that cryptocurrency that is discharged after 12 months is not subject to capital gains.