The influx of institutional crypto investment products remains dominant for Ethereum and Cardano while BTC demand decreases.
Altcoin Influx Increase
Institutional influxes of investments into altcoin products steadily increased last week, but the same cannot be said about Bitcoin.
The CoinShares institutional asset management recognized $24 million in total influxes of altcoin based investment products in its Digital Asset Fund Flows Weekly report on 30 August. Investing in altcoin products is up by 14.3 percent, compared to last week’s $21 million. Therefore, marking the second straight week of inflows to altcoin funds.
ETH and ADA Inflow
Ether was the favourite of institutional investors, with an inflow of $17.2 million per week from products based on ETH.
The research showed that Ethereum and other cryptocurrencies are currently 32% of the total assets under management in the industry. This is only 3% shy of a mid-May record of 35%.
Record weekly inflows from Cardano-based institutional funds amount to $10.1 million, 32 percent of total altcoin inflows a week. Now 0,15% of the locked equity of crypto-investment products combined is under Cardano-based instruments.
The growth in Cardano inflows is due to the update “Alonzo” for the new project on 12 September. This is the first time the project starts using intelligent contracts.
The inflows from Polkadot and Solana funds are $1.5 million and $2.7 million. Solana currently ranks ninth in AUM with 10th place for BCH funds. Therefore, exceeding the Bitcoin Cash for assets managed in linked funds.
Bitcoin Outflows
Although the positive dynamic around Altcoins was over, the study stated that Bitcoin products continue to demonstrate outflows, with a loss of $3.8 million during the period. For 14 outflows of the previous 16 weeks, Bitcoin goods have therefore been listed.
According to CoinShares, institutional asset managers now account for AUM of $56,8 billion combined, a slight week-over-week fall in AUM across the industry attributable to continuing withdrawals from Bitcoin-based products.
Looking at fund issuers performance, CoinShares’ Bitcoin fund has suffered the worst loss in the last week with a $14.5 million outflow. ETC Issuance experienced the biggest influx of $14.1 million.
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