Bitcoin Fund Reserves Fall to Lowest Level Since October 2021

Stock markets have experienced strong turmoil over the past two weeks. The biggest blow to the tech sector came from the collapse of three U.S. banks supporting the digital economy.

Bitcoin was one of the hardest hit by the Silvergate Bank crisis.

A report by ByteTree Asset Management says that the amount of BTC held in ETFs has dropped to its lowest level since October 2021.

The team analyzed the performance of funds in the US, Canada and Europe and found that the volume of cryptocurrency in them fell by 16,560 BTC ($409 million) to 826,113 BTC. Such instruments are used by institutional investors to generate income without having to purchase the asset directly.

The decrease in the volume of cryptocurrencies in ETFs indicates a sharp weakening of the interest of large investors in digital currency, which has recently come under strong pressure.

As Charlie Morris, head of the investment division of ByteTree, noted, institutionalists doubt that bitcoin will be able to demonstrate good performance in the medium term.

A similar situation is developing in the precious metals market. Researchers have recorded the exit of capital from funds investing in gold.

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