Cointelegraph Team
Cointelegraph
Institutional inflows to altcoin investment products have continued to increase this past week, but the same cannot be said for Bitcoin.
In its Digital Asset Fund Flows Weekly report on Aug. 30, institutional asset manager CoinShares identified overall inflows of $24 million to altcoin-based investment products. The capital flows mark the second consecutive week of inflows to altcoin funds, with investments into altcoin products increasing by 14.3% compared to last week’s $21 million.
Ether was the favored asset among institutional investors, with ETH-based products posting a weekly inflow of $17.2 million. The report noted that products tracking Ethereum and other altcoins now represent 32% of the sector’s total assets under management (AUM) — just 3% shy of mid-May’s record of 35%.
Cardano-based institutional funds posted record weekly inflows with $10.1 million, representing 32% of the week’s total altcoin inflows. Cardano-based instruments now hold 0.15% of the capital locked in crypto investment products combined.
The surge in Cardano inflows is attributed to anticipation for its Sept. 12 "Alonzo" upgrade which will see the project launch smart contract functionality for the first time.
Polkadot and Solana-based funds also saw inflows with $1.5 million and $2.7 million respectively. Solana has now surpassed Bitcoin Cash for assets under management in related funds with $16 million, ranking ninth in terms of AUM with BCH funds in tenth.
Despite the bullish momentum surrounding altcoins, the report noted that Bitcoin products continue to see outflows, with a loss of $3.8 million for the period. As such, Bitcoin products have posted outflows for 14 of the past 16 weeks.”
CoinShares estimates that institutional asset managers currently represent an AUM of $56.8 billion combined — attributing the slight week-over-week drop in sector-wide AUM to persistent outflows from Bitcoin-based products.
Looking at the performance of fund issuers, CoinShares’ own Bitcoin fund saw the heaviest losses this past week with an outflow of $14.5 million. ETC Issuance saw the largest inflow at $14.1 million.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.