It has been just revealed that there are some altcoins that see institutional capital flows. Check out the latest reports about this below.
XRP, ADA, SOL and institutional inflow
According to CoinShares, a digital assets manager, institutional investors are showing increased optimism towards altcoins, even though Bitcoin and the overall market experienced outflows for two consecutive weeks.
CoinShares’ Digital Asset Fund Flows Weekly Report reveals that digital assets have received almost half a billion in inflows midway through 2023.
Last week, digital asset investment products experienced minor outflows of US$21m, with trading volumes for these products totaling US$915m, lower than the weekly average of US$1.5bn so far this year.
This trend was also seen in the Bitcoin market, which saw a total of US$16bn traded last week on reliable exchanges, compared to the weekly average of US$52bn this year. At the halfway point of the year, digital assets have seen just under US$0.5bn of inflows.
Even though Ethereum (ETH) and Avalanche (AVAX) lost a little bit of money, less than $2.5 million combined, some other altcoins gained money.
Cardano (ADA), Solana (SOL), and XRP products all received inflows of money, with Cardano receiving $0.64 million, Solana receiving $0.6 million, and XRP receiving $0.5 million.
According to Coinshares, more than 90% of the money that was taken out of investments was from Bitcoin. Additionally, short-BTC products faced their 14th consecutive week of outflows.
This indicates that investors have been cashing in on their returns in recent weeks, but overall, the sentiment towards the asset remains positive.
Macro factors threaten the crypto markets
During an interview with Scott Melker, Coinbase’s Head of Institutional Research, David Duong expressed concern about the strengthening US dollar and the cautious approach of global central banks, which could potentially harm the cryptocurrency industry.
Duong suggests adopting a defensive strategy in the short term, especially since the US dollar has recently stabilized after a rebound approximately a week and a half ago.
