Institutional Capital Flows Surge for XRP, Cardano (ADA), and Solana (SOL) as Altcoin Sentiment Improves, Reports CoinShares
Institutional Investors Optimistic on Altcoins as Bitcoin Faces Outflows: CoinShares Report
Institutional investors are showing increased optimism towards altcoins despite recent outflows in the overall cryptocurrency market, including Bitcoin (BTC). CoinShares, a leading digital assets manager, revealed this trend in its latest Digital Asset Fund Flows Weekly Report. As we reach the midpoint of 2023, the report indicates that digital assets have attracted nearly half a billion dollars in inflows.
During the past week, there were minor outflows of US$21 million from digital asset investment products. Additionally, trading volumes for these products were relatively low, standing at US$915 million for the week, compared to the weekly average of US$1.5 billion seen so far this year.
The subdued trading volumes were also observed in the Bitcoin market, which saw a total trading volume of US$16 billion last week on trusted exchanges. This figure was significantly lower than the weekly average of US$52 billion recorded throughout the year. By the halfway point of the year, digital assets witnessed inflows of just under US$0.5 billion.
CoinShares further analyzed the outflows and found that over 90% of the total outflows came from Bitcoin. Additionally, short-BTC products experienced their 14th consecutive week of outflows. This suggests that investors have been capitalizing on profits in recent weeks while still maintaining an overall positive sentiment towards the asset.
Amidst the outflows in the broader market, some altcoins performed well, drawing investor interest. Ethereum (ETH) and Avalanche (AVAX) experienced minor outflows, totaling less than $2.5 million combined. However, other altcoins received positive attention, particularly Cardano (ADA), Solana (SOL), and XRP.
Investment products related to Cardano saw inflows of $0.64 million, while Solana and XRP products both enjoyed inflows of $0.6 million and $0.5 million, respectively.
CoinShares’ report highlights the shifting dynamics in the cryptocurrency market, with institutional investors showing an increasing preference for certain altcoins despite the challenges faced by Bitcoin and the overall market. As the year progresses, these trends may continue to evolve, potentially reshaping the landscape of digital asset investments.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.