Solana ($SOL) and Avalanche ($AVAX) Investment Products Lead Altcoin Inflows: Report

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.

Source: CoinShares




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. ”

DISCLAIMER
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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