BTC outflows persist as institutions remain bullish on Cardano and Ether
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BTC outflows persist as institutions remain bullish on Cardano and Ether

Saudu Clement
Saudu Clement

Altcoin investment products have continued to see an increase in institutional inflows over the past week, while the reverse is the case for Bitcoin.

Institutional asset manager CoinShare disclosed overall inflows of $24 million to altcoin-based investment products in its Digital Asset Fund Flows Weekly report on Aug. 30. This marks the second consecutive week of inflows to altcoin funds, as its investment products increased by 14.3% compared to last week’s $21 million.

A major point from the report is that products tracking Ethereum and other altcoins now represent 32% of the sector’s total assets under management (AUM), just 3% short of mid-May’s record of 35%.

Ether appears to be the favored asset among institutional investors. ETH-based products posted a weekly inflow of $17.2 million. Meanwhile, Cardano-based institutional funds posted record weekly inflows of $10.1 million, representing 32% of the week’s total altcoin inflows.

The rise in Cardano inflows is linked to its Sept. 12 "Alonzo" upgrade, which will provide the tools for creating business applications, precisely smart contracts written in Plutus.

Polkadot and Solana-based funds also saw inflows of $1.5 million and $2.7 million, respectively. Solana has now bettered Bitcoin Cash for assets under management in related funds.

However, Bitcoin products continue to see outflows despite the bullish momentum surrounding altcoins. Bitcoin products have posted outflows for 14 of the past 16 weeks with a loss of $3.8 million in the last week.