In a surprising way, investment funds based on other altcoins failed to follow in the footsteps of the crypto giants, with Solana, XRP, Cardano, and Litecoin testifying during the week. The latest weekly report in digital asset investment funds by CoinShares shows a trend of weak investment opinion among institutional investors. After witnessing three consecutive weeks of inflows, crypto investment funds recorded an outflow of $147 million last week. Undoubtedly, most of these the exit was focused on Bitcoinwhile Ethereum follows closely behind as the second largest contributor to losses.
Bitcoin and Ethereum Products Are Bleeding Out
Last week there seemed to be events in the price action of many cryptocurrencies, and the data shows that this trend is echoed in their corresponding investment funds. Bitcoin and Ethereum, which ended September on a positive note, started October on a very unfavorable note. This trend was also reflected in institutional investors, who pulled back on their investments.
As a result, digital asset investment funds, which have come from a $1.2 billion in revenue last weekfailed to attract much revenue last week. As such, their net flow returned to negative territory and ended the week at $147 million negative. According to CoinShares, this was mainly due to higher-than-expected economic data last week, which reduced the chances of further rate cuts by the Fed.
Bitcoin ended the week with an outflow of $159 million. Most of this is coming out were recorded with Spot Bitcoin ETFs in the US, ending the week at $301.5 million at the exit. Ethereum-based investment funds also saw net outflows of $28.9 million last week, mostly from Spot Ethereum ETFs in the US.
Solana, XRP, and Cardano Record Amazing Inflows
Contrary to the current trend, several altcoins have received positive inflows from institutional investors, which shows the continued interest in these assets despite the wide decline affecting Bitcoin and Ethereum. Solana, XRP, Cardano, and Litecoin saw $5.3 million, $0.3 million, $0.3 million, and $0.9 million in revenue, respectively.
The most notable investment from institutional investors went into multi-asset products, which saw $29.4 million in inflows last week. This is particularly noteworthy because last week’s data marked the 16th consecutive week of gains in commodity prices.
Another notable highlight was the foray into short Bitcoin products. Short Bitcoin products also ended the week at a net inflow of $2.8 million, further indicating a reversal of bullish Bitcoin sentiment. BNB is the only altcoin to follow Bitcoin and Ethereum, registering a $1 million net outflow.
By region, the US, Germany and Hong Kong saw outflows of $209 million, $8.3 million and $7.3 million, respectively. On the other hand, Canada and Switzerland received an income of $43 million and $35 million, respectively.
The featured image was created with Dall.E, a chart from Tradingview.com
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