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
