CoinShares has revealed 4 altcoin projects that institutional investors are buying in a new fund flow report. BTC, ETH, and SOL were among the crypto funds that saw the biggest outflows.
Crypto volumes fell 55%, according to report
According to CoinShares’s August 22 report, market volumes remain very low with outflows of $9 million total. Bitcoin investment products, which include ETFs, ETPs and Grayscale’s GBTC, have seen a third consecutive week out. Crypto investment products recorded small weekly outflows last week as volumes fell to their second-lowest level of the year. Thus, weak demand among institutional investors at the end of the summer was confirmed by the data.
Top-rated altcoin projects
According to CoinShares’ report, exits from cryptocurrency investment products amounted to $8.7 million in the week ended Sunday. Bitcoin (BTC) investment products saw a total outflow of $15.3 million for the third week in a row. Solana (SOL) funds also recorded small outflows totaling $1.4 million. Meanwhile, Ethereum (ETH) and multi-asset investment products posted small weekly inflows of $2.9 million and $2.7 million, respectively. Overall, crypto investment products have registered $1 billion in weekly volumes, which is 55% below the annual average.
Why do institutional investors sell?
CoinShares said most of the negative sentiment centered around Bitcoin, which fell last week after facing a harsh rejection at $25,000. Bitcoin is currently hovering around $21,200, which is below its realized price, or the average price at which the circulating supply of BTC was last bought. The cryptocurrency market’s strong correlation with traditional stocks exposes it to more volatility ahead of the Federal Reserve’s annual Jackson Hole Summit in Wyoming this week.
Most popular altcoin projects
Ethereum saw weekly inflows totaling $3 million. Thus, it signaled a reversal in sensitivity. In mid-June, Ethereum investment products saw a total year-over-year outflow of $459 million. Since then, as clarity on the merge has increased, Ethereum has seen a total of $162 million in 9-week inflows. Other altcoins, especially Cardano, with the $0.5 million inflow, have seen phenomenal inflows. The altcoins with the most entries per week were as follows, along with their weights:
- Ethereum: $2.9 million
- Binance: $0.5 million
- Cardano: $0.5 million
- XRP: $0.3 million
