By Shelly Melancon (Switzerland)
Data analytic website CoinShares, discloses that institutional investors have a preference for Cardano and Ethereum to Bitcoin following the sudden plunge in prices of the flagship digital asset. CoinShares Reveals that there was a spike of inflows this week towards the two altcoins as compared to the BTC, showing renewed interest of investors in purchasing Cardano and Ethereum.
Cardano’s inflow hit are record high in the new week, almost equalling that of Ethereum and bringing the total to date to about $108M. Last week, ETH inflows equaled $17.3M, while Cardano totaled $16.4M. A week before that, ETH was $5M while the other recorded a massive inflow of $31.4M.
The report further explains that total crypto investment products witnessed an inflow of $151M last week, the 13th straight week it has maintained a constant inflow. As a result, the total inflows to date amounted to an impressive $9B. In addition, total number of assets under management hit a record high of $87B, but closed shedding $4B.
Inflow May Have Enticed Investors
Following the release of the data, CoinShares began analyzing the reason for the renewed interests in the two popular altcoins. Its experts concluded that the current inflow of capital may have enticed the investors to choose Cardano and Ethereum over Bitcoin, thus, kickstarting a new phase of dominance for the two altcoins.
Also read:CoinShares further stated that the recent decline in BTC prices as well as the slow investment inflow may have contributed. Bitcoin inflows totaled $98M, while assets under management were put at $56B. This is the case, despite its dominance in the cryptosphere last week when compared to altcoins.
Crypto Investment Product Market Volume Still Low
Despite the impressive inflows that the crypto investment product market has experienced in the week, the numbers are still very much low compared to the figures recorded in the first half of the year. Volume of inflows in H2 average $750M daily compared to $960M in H1.
Solana, Polkadot, and XRP inflows are put at $18.1M, despite the latter’s ongoing suit with its co-defendant Ripple and the SEC. Solana had an inflow that amounted to $9.8M, while Polkadot and XRP recorded $5.2M and $3.1M respectively.
Till now, it’s still speculative as to what factors are driving the inflows towards Cardano and Ethereum. At the moment, it can only attribute the dominance of these coins to the rising investor sentiment. In the past, many experts have stated that altcoins are better investments than Bitcoin owing to their low volatility rate. Further drop in BTC prices may still influence more investors to opt for Cardano and Ethereum.
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