Institutional demand for altcoin exposure has risen to record highs: altcoin’s market share now represents 35% of the capital locked into cryptocurrency investment products.
According to relationship Digital Asset Fund Flows Weekly by CoinShares on Sept. 7, nearly 40% of last week’s inflows into digital asset investment products went into altcoin-tracking tools.
Of the $ 97.8 million invested in crypto investment products between August 30 and September 3 – the third consecutive week of industry inflows – $ 38.9 million was invested in altcoin products.
There was also a notable increase in institutional cryptocurrency investments last week, with the previous two weeks signing inflows of $ 24 million and $ 21 million, respectively.
Ethereum-based products (ETH) led the altcoin package for the second consecutive week, recording inflows of $ 14.4 million – a drop of 16.2% from $ 17.2 million the previous week.
There was a whopping 388% spike in weekly inflows for Solana (SOL) based products, which absorbed $ 13.2 million. This coincided with the 37% rise in the token over the same period.
CoinShares notes that inflows on Solana-based products doubled last week from the beginning of the year: from the beginning of the year to today, 25 million dollars have been invested in SOL instruments. SOL-based products now represent an overall AUM of $ 44 million.
Funds based on Cardano (ADA) and Polkadot (DOT) also saw significant inflows of $ 6.5 million and $ 2.7 million, respectively.
Bitcoin investment products (BTC) suffered eight weeks of outflows – the longest streak on record for any digital asset-based product. Despite the recent bullish momentum, BTC investment products have been experiencing outflows for 14 of the past 17 weeks.
Related: The capitalization of crypto-related equities has quadrupled since January
According to CoinShares estimates, institutional asset managers currently count a total AUM of 62.5 billion, approaching the record of $ 66 billion recorded in mid-May.
Grayscale, the leading institutional asset manager, continues to dominate the competition, accounting for 73% of the industry’s combined AUM at $ 46.2 billion.
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