Digital assets manager CoinShares has revealed that institutional investors are turning their attention to altcoins such as XRP, Cardano (ADA), and Polygon (MATIC) as crypto markets continue to experience outflows for the ninth consecutive week. According to CoinShares’ latest Digital Asset Fund Flows Weekly Report, institutional investors sold off $5.1 million in crypto holdings last week, which is significantly less than the previous eight weeks. While minor inflows were observed following news of a Bitcoin ETP application by one of the world’s largest asset managers, they weren’t enough to offset the outflows, resulting in a total of $423 million.  Bitcoin, Ethereum, multi-asset investment vehicles, and Tron were among the assets sold off by institutional investors. However, following recent declines in altcoin prices, investors added to their positions, with inflows totaling $2.4 million. XRP, Cardano, and Polygon were the focus of these inflows, seeing $1 million, $0.6 million, and $0.2 million inflows, respectively. The report suggests that the crash in Altcoin prices from the prior week prompted investors to take advantage of the dip and invest in these alternative cryptocurrencies. Altcoins have been hit hard in recent weeks as regulatory pressure and environmental concerns surrounding Bitcoin’s energy consumption have led to increased volatility in the crypto markets. Despite the outflows, the report notes that digital asset investment products continue to see strong inflows this year, totaling $5.3 billion. This figure is still significantly lower than the $6.7 billion seen during the same period last year but represents a strong recovery from the significant outflows experienced earlier this year.  The report also notes that the total assets under management (AUM) for digital asset investment products hit a record high of $76.1 billion last week, up from $69.9 billion the previous week. This increase in AUM suggests that institutional investors remain bullish on the long-term prospects of the crypto market, despite the recent price volatility. Source: The Daily HODL

Bitcoin‘s market dominance, which measures the proportion of the total cryptocurrency market cap attributed to Bitcoin, has exceeded 50% for the first time in two years. This surge in market dominance is largely due to investors turning to Bitcoin as a safe haven amidst regulatory scrutiny of the crypto industry in the United States and the recent FTX crisis. The measure has grown by over 10.5% since November 2022, when it stood at just under 40%, representing a significant increase in demand for Bitcoin as investors seek a stable asset in uncertain times. As of June 19 at 6 pm UTC, Bitcoin’s dominance hit just above 50% and has since settled to 49.9% at the time of publication, according to data from TradingView. This means that Bitcoin alone accounts for half of the total $1.1 trillion dollar market capitalization of the entire crypto market. Bitcoin’s current market capitalization stands at $519 billion, according to data from Coingecko. It is worth noting that while Bitcoin’s dominance has increased significantly over the past eight months, Ether’s market dominance has been holding steady around the 20% mark for the better part of a year. MicroStrategy co-founder and outspoken Bitcoin enthusiast Michael Saylor believes that Bitcoin’s market dominance will continue to grow, eventually topping 80% in the coming years. He attributes this forecast to increasing regulatory pressure from the Securities and Exchange Commission (SEC) causing Stablecoins and other crypto assets to “go away.” Saylor believes that regulatory clarity will drive Bitcoin adoption by eliminating the confusion and anxiety holding back institutional investors and that the crypto industry will rationalize around Bitcoin as it goes mainstream. Saylor also blamed the lack of any “mega institutional money” entering the crypto space on the “confusion and anxiety” brought about by the 25,000 other cryptocurrencies that have positioned themselves as alternatives to Bitcoin. He believes the entire industry is destined to be rationalized down to a Bitcoin-focused industry, with maybe half a dozen to a dozen other Proof of Work tokens. Investment firm Blackrock’s filing for a Bitcoin spot ETF is also believed to have contributed to the recent upward price action of Bitcoin. The value of Bitcoin has grown more than 3% over the course of the last week despite “fear” in the crypto market reaching its highest point in three months. Crypto research firm Santiment also points to Blackrock’s filing as one of the major drivers of Bitcoin’s recent price action.  Source: Cointelegraph