Institutional investors have been dumping cryptocurrency investment products providing exposure to top digital assets like Bitcoin ($BTC) and Ethereum ($ETH), but have been increasing their bets on products providing exposure to altcoins like XRP, Solana ($SOL), Litecoin ($LTC), and Polygon ($MATIC).
The sixth week of outflows for digital asset investment products, totaling $95 million, was reported in CoinShares’ most recent Digital Asset Fund Flows report. This amount accounted for 1.2% of total assets under management.
BTC and ETH Products Outflows Continue
Bitcoin has been rising dramatically, and institutional investors have been selling BTC-related instruments. Outflows of BTC-related products totaled $113 million last week. Ethereum goods witnessed outflows of $13 million last week.
Despite this trend, other cryptocurrencies received a total of $1.3 million in inflows. XRP products received inflows of $400,000, while $200,000 inflows were seen in SOL, MATIC, and LTC products.
Factors Behind the Outflows
The report suggests that substantial digital asset outflows were most likely due to a lack of liquidity. Products shorting BTC saw $34.7 million in weekly inflows as bets against the flagship cryptocurrency increased.
Shift to Altcoins
According to CryptoGlobe, bets on XRP and SOL investment products increased over the last week, while BTC products saw outflows. Whale activity has been noted in Solana, with a SOL whale depositing $10.2 million in the smart contract platform’s native currency to Coinbase, a large US-based cryptocurrency exchange.
Meanwhile, XRP has been performing well after Ripple’s Chief Legal Officer Stuart Alderoty expressed his confidence in Ripple’s chances of winning in the most recent judgement in the SEC’s action against Ripple.
Conclusion
With institutional investors increasingly focusing on altcoins, it will be interesting to see whether this trend continues or changes in the coming weeks and months.
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