In a surprising move, investment funds based on other altcoins did not follow in the footsteps of the cryptocurrency giants, with Solana, XRP, Cardano and Litecoin all witnessing inflows during the week. the latest weekly report CoinShares digital asset investment fund report shows a trend of weaker investment sentiment among institutional investors. After witnessing three consecutive weeks of inflows, cryptocurrency investment funds recorded an outflow of $147 million last week. As expected, most of these bitcoin/bitcoin-last-big-drop-expert-key-indicator/” rel=”nofollow noopener” target=”_blank”>exits were concentrated in bitcoinwhile ethereum followed closely as the second largest contributor to losses.
bitcoin and ethereum products bleed with exits
Last week bitcoin/bitcoin-investors-show-fear-could-a-price-bottom-be-imminent/” rel=”nofollow noopener” target=”_blank”>turned out to be quite hectic for the price action of many cryptocurrencies, and data shows that this trend was echoed in their associated investment funds. bitcoin and ethereum, which ended September on a positive note, started October on a not-so-favorable note. This trend was also reflected among institutional investors, who reduced their investments.
Consequently, investment funds in digital assets, which came from a Inflow of 1.2 billion dollars the previous weekfailed to attract many entries last week. As such, its net flows reverted to a negative zone and ended the week at negative $147 million. According to CoinShares, this was mainly because last week's economic data was better than expected, reducing the chances of a further rate cut by the Federal Reserve.
bitcoin ended the week with an outflow of $159 million. Most of these outputs were registered through bitcoin Spot ETF in the United States, which ended the week with outputs of 301.5 million dollars. ethereum-based investment funds also saw a net outflow of $28.9 million last week, with the majority coming from ethereum Spot ETFs in the US.
Solana, XRP and Cardano record surprising entries
Defying the prevailing trend, several altcoins saw positive inflows from institutional investors, reflecting continued interest in these assets despite the broader slowdown affecting bitcoin and ethereum. Solana, XRP, Cardano, and Litecoin recorded inflows of $5.3 million, $0.3 million, $0.3 million, and $0.9 million, respectively.
The most notable investment from institutional investors was in multi-asset products, which recorded net inflows of $29.4 million last week. This is particularly notable because last week's data marked the 16th consecutive week of capital inflows into multi-asset products.
Another notable highlight was the influx of Short bitcoin products. bitcoin shorts 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, recording a net outflow of $1 million.
In terms of geographic location, the United States, Germany and Hong Kong recorded outflows of $209 million, $8.3 million and $7.3 million, respectively. On the other hand, Canada and Switzerland received inflows of $43 million and $35 million, respectively.
Featured image created with Dall.E, chart from Tradingview.com
