In a surprising move, other altcoin-based investment funds have failed to follow the crypto giant’s footsteps, with Solana, XRP, Cardano, and Litecoin witnessing inflows during the week. The latest weekly report on digital asset investment funds by CoinShares shows a trend of weakening investment sentiment among institutional investors. Cryptocurrency investment funds recorded inflows for the third consecutive week, with outflows of $147 million last week. Unsurprisingly, the majority of these outflows were concentrated in Bitcoin, with Ethereum following closely as the second-largest contributor to losses.
Bitcoin and Ethereum products leaked causing major hemorrhage
The past week has proven to be very eventful for the price movements of many cryptocurrencies, and data shows that this trend was also reflected in related investment funds. Bitcoin and Ethereum ended September on a positive note, but October started on a less favorable note. This trend was also reflected among institutional investors, who refrained from investing.
As a result, digital asset investment funds, which had inflows of $1.2 billion the previous week, failed to attract much inflow last week. As such, net flows reversed into negative territory and ended the week at -$147 million. CoinShares said this was mainly due to better-than-expected economic data last week, reducing the likelihood of further Fed rate cuts.
Bitcoin ended the week with $159 million in outflows. Most of these outflows were recorded through the US Spot Bitcoin ETF, which ended the week with $301.5 million in outflows. Ethereum-based investment funds also saw net outflows of $28.9 million last week, with the majority coming from the US Spot Ethereum ETF.
Solana, XRP and Cardano record surprising inflows
Contrary to the general trend, several altcoins experienced positive inflows from institutional investors despite the widespread economic downturn that affected Bitcoin and Ethereum. This reflects continued interest in these assets. Solana, XRP, Cardano, and Litecoin saw inflows of $5.3 million, $300,000, $300,000, and $900,000, respectively.
The most notable investment from institutional investors was in multi-asset products, which saw net inflows of $29.4 million last week. This is particularly noteworthy since last week’s data marked the 16th consecutive week of inflows into multi-asset products.
Another notable highlight is the influx into short Bitcoin products. Bitcoin short products also ended the week with $2.8 million in net inflows, further reflecting a reversal from Bitcoin’s bullish trend. BNB was the only altcoin after Bitcoin and Ethereum to record net outflows of $1 million.
In terms of geographic locations, the US, Germany, and Hong Kong outflowed $209 million, $8.3 million, and $7.3 million, respectively. Meanwhile, Canada and Switzerland received $43 million and $35 million, respectively.
Solana continues to receive institutional support | Source: SOLUSDT on Tradingview.com
Featured image created by Dall.E, chart on Tradingview.com
