Institutional Investors Dump BTC and ETH Products While Increasing Bets on XRP, SOL, LTC, and MATIC
Institutional investors have been shifting their focus from investing in Bitcoin and Ethereum to altcoins, with products that provide exposure to XRP, Solana, Litecoin, and Polygon seeing increased bets, according to CoinShares’ Digital Asset Fund Flows report. The report revealed the sixth week of outflows for digital asset investment products, totaling $95 million, which accounts for 1.2% of total assets under management.
BTC and ETH Products Outflows Continue
The report shows that Bitcoin-related instruments have witnessed dramatic growth, but institutional investors are selling them, with BTC-related products seeing outflows of $113 million last week. Ethereum products also witnessed outflows of $13 million last week.
However, other cryptocurrencies, such as XRP, SOL, MATIC, and LTC products, received $1.3 million in inflows, with XRP products seeing inflows of $400,000, and SOL, MATIC, and LTC products receiving $200,000 inflows.
Factors Behind the Outflows
According to the report, the substantial digital asset outflows are most likely due to a lack of liquidity, as products shorting BTC saw $34.7 million in weekly inflows as bets against the flagship cryptocurrency increased.
Shift to Altcoins
Recent trends suggest that institutional investors are increasingly focusing on altcoins, such as XRP and SOL, while BTC and ETH products saw outflows. Whale activity was 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 expressed confidence in Ripple’s chances of winning in the SEC’s action against Ripple.
Conclusion
As institutional investors increasingly focus on altcoins, it will be interesting to see whether this trend continues or changes in the coming weeks and months.
