Cryptocurrency

CoinShares: Ethereum and Cardano Dominate Inflows to Institutional Crypto Investment Products

As Ethereum (ETH) and Cardano (ADA) enjoy institutional inflows into crypto investment products, Bitcoin (BTC), the largest cryptocurrency by market capitalization, continues to lag behind.

According to the institutional asset manager, CoinShares’ Digital Asset Fund Flows Weekly report, there was an overall inflow of $24 million to altcoin-based investment products.

Read Also: deVere Group CEO: Ethereum (ETH) Value Will Overtake That Of Bitcoin (BTC) Within Five Years

The capital flow is the second week of inflows in a row to altcoin funds, with investments into altcoin products surging by 14.3% compared to $21 million recorded last week.

According to CoinShares’ report, Ethereum (ETH), the second-largest crypto by market capitalization, was the most favored digital asset among institutional investors.

The report says that Ethereum-based products recorded a weekly inflow of $17.2 million. The products tracking ETH and other altcoins now take 32% of the total assets under the management of the institutional asset manager.

Read Also: Another Milestone to Hard Forking the Cardano Mainnet: Upgrade Proposal Has Been Submitted

Cardano (ADA) Also Gained Institutional Trust

Cardano-based institutional funds also recorded their highest weekly inflows of $10.1 million on the sector, representing 32% of the week’s total altcoin inflows.

Currently, Cardano-based instruments now hold 0.15% of the capital locked in crypto investment products combined.

The notable increase in Cardano inflows can simply be attributed to the anticipation for 12th September 2021, when Alonzo mainnet launch, which will activate smart contracts functionality on Cardano, is estimated to play out.

Read Also: Advisory Firm Managing Director: Bitcoin (BTC) Will Hit $100,000 in Six Months, $1 Million in A Few Years

Bitcoin (BTC) Lags Behind

Bitcoin (BTC) products continue to experience outflows despite the bullishness of altcoins. According to the report, Bitcoin products recorded a loss of $3.8 million for the period. This implies that outflows have dominated Bitcoin products for 14 of the past 16 weeks.


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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.

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