July 24, 2024
Blockchain News

Institutional Investors Dump $BTC and $ETH Products While Increasing Bets on $XRP, $SOL, and More

Over the last week, institutional investors have dumped cryptocurrency investment products that provide exposure to top digital assets such as Bitcoin ($BTC) and Ethereum ($ETH), but have notably increased bets on products that provide exposure to altcoins such as $XRP, Solana ($SOL), Litecoin ($LTC), and Polygon ($MATIC).

According to CoinShares’ most recent Digital Asset Fund Flows report, the sixth week of outflows for digital asset investment products totaled $95 million, bringing the 5-week total to $406 million. This amount accounts for 1.2% of total assets under management.

As the price of Bitcoin has been rising dramatically, institutional investors have been selling BTC-related instruments, with outflows totaling $113 million in the last week. The price surge has been such that total assets under management for these products rose 32% throughout the week.

Similarly, Ethereum goods witnessed outflows of $13 million last week. Other cryptocurrencies, on the other hand, defied the trend, receiving a total of $1.3 million in inflows. $400,000 inflows were seen in $XRP products, whereas $200,000 inflows were seen in SOL, MATIC, and LTC products.

According to the business, substantial digital asset outflows were most likely due to a lack of liquidity. Interestingly, products shorting BTC saw $34.7 million in weekly inflows as bets against the flagship cryptocurrency increased.

According to CryptoGlobe, bets on XRP and SOL investment products increased over the last week, while BTC products saw outflows. Solana has seen whale activity in recent days, with a SOL whale depositing $10.2 million in the smart contract platform’s native currency to Coinbase, a large US-based cryptocurrency exchange.

Earlier this month, a group of enormous Solana whale wallets transferred more than $60 million in $SOL to the Nasdaq-listed cryptocurrency exchange in a series of transactions that suggest the funds were moved by a single entity.

XRP, on the other hand, has been performing well after Ripple’s Chief Legal Officer Stuart Alderoty stated that the most recent judgement in the SEC’s action against Ripple has left him feeling more confident than ever about Ripple’s chances of winning.