Summer doldrums? Crypto volumes are down 55%, according to CoinShares

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Crypto investment products registered minor weekly outflows last week as volumes plunged to their second-lowest levels of the year, signaling weak demand among institutional investors during the tail end of summer.

Outflows from digital asset investment products totaled $8.7 million in the week ending Sunday, CoinShares reported Monday. Bitcoin (BTC) investment products saw a third consecutive week of outflows totaling $15.3 million. Funds with direct exposure to Solana (SOL) also registered minor outflows totaling $1.4 million.

Meanwhile, Ether (ETH) and multi-asset investment products registered small weekly inflows of $2.9 million and $2.7 million, respectively.

Overall, crypto investment products registered $1 billion in weekly volumes, which is 55% below the yearly average.

CoinShares said most of the negative sentiment had been centered around Bitcoin, which tumbled last week after facing a stern rejection at $25,000. Bitcoin currently sits around $21,200, which is below its realized price, or the average price at which BTCโ€™s circulating supply was last purchased.

Related: Over 200K BTC now stored in Bitcoin ETFs and other institutional products

Cryptoโ€™s strong correlation with traditional equities leaves the asset class exposed to further volatility ahead of the Federal Reserveโ€™s annual Jackson Hole Summit in Wyoming later this week. While options traders see little cause for concern, Fed Chair Jerome Powell could reinforce the central bankโ€™s policy expectations for the fall when he delivers his Jackson Hole address on Friday.

Large institutions offloaded $5.5 billion worth of BTC between May and July, mostly as a result of forced selling, according to Arcane Research. Institutional investors appear to be hanging out on the sidelines due to crypto market volatility, a rocky macro backdrop and uncertainty on the regulatory front.