Cryptoasset investment products saw inflows totaling $ 109 million last week, with products tied to the flagship cryptocurrency Bitcoin seeing the lion’s share of those inflows. As for altcoins, Solana ($ SOL) and Avalanche ($ AVAX) investment products led the pack.
According to CoinShares’ latest report, Bitcoin-related investment products saw $ 89 million worth of inflows, with the figure being relatively low for the flagship cryptocurrency. The firm noted that in the last five weeks BTC product inflows totaled $ 221 million, representing 0.7% of total assets under management.
Ethereum, the second-largest cryptocurrency by market capitalization, saw over $ 15 million worth of outflows, while products offering investors exposure to Binance’s BNB saw outflows of around $ 500,000.
Solana-based investment products notably saw inflows of $ 1.2 million as its year-to-date inflows now total $ 12 million. In contrast, Cardano and $ XRP investment products saw $ 3 million and $ 5 million inflows year-to-date, respectively.
Multi-asset investment products, which may represent a wider bet on the cryptocurrency market, notably saw $ 9.4 million inflows last week, which helped their total inflows year-to-date reach $ 69 million.
Ethereum competitor Avalanche saw $ 25 million worth of institutional inflows last week, although CoinShares noted these occurred in a single day, meaning it’s “too early to tell if this represents broader appetite for the altcoin.”
As CryptoGlobe reported, Morgan Stanley’s wealth management global investment office has published a report on the second-largest cryptocurrency by market capitalization earlier this month, noting it could lose market dominance to competitors like Cardano ($ ADA), Tezos ($ XTZ), and Solana ($ SOL) over its transaction costs.
The investment bank’s analysts added that because of the heightened competition it faces, Ethereum poses a greater investment risk than bitcoin, with fewer transactions per user being needed to use BTC, which is “akin to a decentralized savings account,” while ETH demand is ” tied more closely to transactions. ”
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