In a surprising move, investment funds based on other altcoins did not follow in the footsteps of crypto giants, with Solana, XRP, Cardano and Litecoin seeing inflows during the week. The last weekly report on CoinShares’ digital asset investment funds depicts a trend of weaker investment sentiment among institutional investors. After experiencing three consecutive weeks of inflows, crypto investment funds recorded an outflow of $147 million last week. Unsurprisingly, the majority of them outflows were focused on Bitcoinwhile Ethereum followed closely behind as the second largest contributor to losses.
Bitcoin and Ethereum products are bleeding releases
Last week turned out to be quite eventful for the price action of many cryptocurrencies, and data shows that this trend is reflected in their associated investment funds. Bitcoin and Ethereum, which ended September on a positive note, started October on a less favorable note. This trend was also reflected among institutional investors, who reduced their investments.
Thus, digital asset investment funds, which came from a Input of $1.2 billion in previous weekfailed to attract much influx last week. Thus, their net flows reversed into a negative zone and ended the week at a negative $147 million. According to CoinShares, this was mainly due to stronger-than-expected economic data last week, which reduced the chances of another rate cut by the Fed.
Bitcoin ended the week with an outflow of $159 million. Most of these outings were recorded via Spot Bitcoin ETFs in the United States, which ended the week with capital outflows of $301.5 million. Ethereum-based investment funds also saw a net outflow of $28.9 million last week, with the majority coming from Spot Ethereum ETFs in the United States.
Solana, XRP and Cardano see surprising entries
Defying the prevailing trend, several altcoins saw positive inflows from institutional investors, reflecting continued interest in these assets despite the broader downturn affecting Bitcoin and Ethereum. Solana, XRP, Cardano, and Litecoin saw $5.3 million, $0.3 million, $0.3 million, and $0.9 million in inflows, respectively.
The most notable investment by institutional investors was in multi-asset products, which saw net inflows of $29.4 million last week. This is particularly noteworthy as last week’s data marks the 16th consecutive week of inflows into multi-asset products.
Another highlight was the influx of Short Bitcoin products. Short Bitcoin products also ended the week with a net inflow of $2.8 million, further reflecting the reversal of Bitcoin’s bullish sentiment. BNB was the only altcoin to follow Bitcoin and Ethereum, seeing $1 million in net outflows.
In terms of geographic location, the United States, Germany and Hong Kong recorded capital outflows of $209 million, $8.3 million and $7.3 million, respectively. On the other hand, Canada and Switzerland received $43 million and $35 million, respectively.
Featured image created with Dall.E, chart from Tradingview.com
