Bitcoin Fund Reserves Drop to Lowest Level Since October 2021

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Over the past two weeks, the stock market has seen a great deal of volatility. The technology sector has been the most impacted by the recent collapse of three U.S. banks that support the digital economy.

Bitcoin has been one of the worst affected by the Silvergate Bank crisis. According to ByteTree Asset Management, the amount of BTC held in ETFs has fallen to its lowest level since October 2021.

An analysis of funds in the US, Canada, and Europe has revealed that the volume of cryptocurrency in them had dropped by 16,560 BTC ($409 million) to 826,113 BTC.

These instruments are often used by institutional investors to generate returns without having to buy the asset itself.

The decline in the level of cryptocurrencies in ETFs signals a notable decrease in institutional investors’ interest in digital currency, which has been under significant pressure lately.