- Bitcoin funds saw outflows of more than $32 million over the last week as sentiment among traders turned negative.
- XRP and Litecoin witnessed weekly inflows of $0.5 million in the last seven days.
- Negative sentiment towards BTC has acted as a bullish catalyst for XRP and Litecoin funds.
Institutional investors pulled capital out of Bitcoin funds for a fifth consecutive week as sentiment towards BTC turned negative. While the flagship cryptocurrency loses popularity among market participants, XRP and Litecoin funds have witnessed capital inflows.
Also read: Hong Kong leaves the door open to Ethereum killers Cardano, Solana, AVAX, MATIC and LINK
XRP, Litecoin funds see capital inflows
Based on data from CoinShares' latest report on institutional capital inflow, investors are moving funds out of cryptocurrency investment products, particularly Bitcoin and Ethereum. Outflows from overall crypto investment funds amount to $232 million in the last five weeks.
The following table shows the weekly and monthly flows by asset in US Dollars.
Weekly capital flows by asset
Bitcoin and Ethereum noted weekly outflows of $32.7 million and $1 million, respectively. On the contrary, Litecoin and XRP saw inflows of around $500,000 overall over the past week. Interestingly, these are the two assets that benefited the most from negative sentiment among traders towards Bitcoin.
Trading volumes across cryptocurrency exchanges have declined since late 2020, data from the report shows. Trading volume across exchange platforms has plunged to a new low of $20 billion for the third week of May.
In an environment where investors are pulling out from assets like Bitcoin and Ethereum, XRP and Litecoin stand out with positive capital inflows. This is a key development for the two altcoins.
What XRP and Litecoin holders can expect
The community of XRP holders wait for an outcome of the US financial regulator Securities and Exchange Commission’s lawsuit against Ripple. As per recent developments, XRP holders are anticipating a positive outcome for the cross-border payment-remittance firm. Find out more here.
Meanwhile, Litecoin is less than 80 days away from its third halving event and the altcoin’s on-chain metrics paint a bullish picture for the asset. Read more here.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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.