Bitrabo Editorial
In an unexpected development, altcoin investment funds did not follow the trends set by major cryptocurrencies, as Solana, XRP, Cardano, and Litecoin experienced notable inflows this week. The recent weekly report from CoinShares reveals a decline in investment enthusiasm from institutional investors. After three weeks of consecutive inflows, crypto investment funds exited $147 million last week. The primary portion of these losses was attributed to Bitcoin, with Ethereum also contributing significantly to the decline.
Bitcoin and Ethereum Face Substantial Outflows
The previous week was particularly active for the cryptocurrency market, with similar movement reflected in associated investment funds. Bitcoin and Ethereum, which started October negatively after a positive end to September, saw a reduction in institutional investment. As a result, the digital asset investment funds shifted from a robust inflow of $1.2 billion to a net outflow of $147 million. CoinShares attributes this reversal to economic data that surpassed expectations, which diminished the likelihood of a Federal Reserve rate cut.
Bitcoin alone experienced an outflow of $159 million, largely influenced by Spot Bitcoin ETFs in the U.S., which totaled $301.5 million in outflows for the week. Likewise, Ethereum investment funds reported a net outflow of $28.9 million, predominantly from U.S. Spot Ethereum ETFs.
Altcoins Like Solana, XRP, and Cardano See Unexpected Inflows
In contrast to the overall trend, several altcoins attracted positive inflows from institutional investors, indicating sustained interest despite the challenges facing 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 standout movement came from multi-asset products, which garnered $29.4 million in net inflows last week, marking the 16th consecutive week of growth in this category. Additionally, Short Bitcoin products saw a net inflow of $2.8 million, signaling a shift from prior bullish sentiment. Notably, BNB was the only altcoin to mirror the declines of Bitcoin and Ethereum, showing a net outflow of $1 million.
Geographically, the U.S., Germany, and Hong Kong experienced outflows of $209 million, $8.3 million, and $7.3 million, respectively. Conversely, Canada and Switzerland attracted inflows of $43 million and $35 million, respectively.