Institutional demand for altcoin exposure has skyrocketed to record highs, and the market share of altcoins now represents 35% of locked capital in cryptocurrency investment products.
According to the report weekly on digital asset cash flows from CoinShares on September 7, Almost 40% of last week’s entries in digital asset investment products were allocated to instruments that follow altcoins.
While between August 30 and September 3, USD 97.8 million were invested in investment products in cryptocurrencies, which represents the third consecutive week of entries in the sector, $ 38.9 million was invested in altcoin products.
Last week there was also a considerable increase in institutional investments in cryptocurrencies, since in the previous two weeks there were entries of 24 and 21 million dollars respectively.
Approximately 35% of the capital invested in institutional crypto investment products is currently locked in instruments that track assets other than Bitcoin, which represents a repetition of the historical maximum of the metric in May.
Ethereum (ETH) Tracking Products Led The Altcoin Pack For The Second Week In A Row, registering entries of 14.4 million dollars, a decrease of 16.2% compared to the 17.2 million dollars of the previous week.
Solana-based (SOL) products posted a 388% increase in weekly entries, and SOL products absorbed $ 13.2 million. This coincided with the rise in the price of SOL by 37% during the same period.
CoinShares highlighted that inflows to Solana products doubled year-to-date (YTD) this past week; USD 25 million have been invested in SOL instruments throughout 2021 so far. SOL-based products now represent $ 44 million in total assets under management (AUM).
Cardano (ADA) and Polkadot (DOT) -based funds also posted notable inflows of USD 6.5 and 2.7 million respectively.
Bitcoin (BTC) investment products broke an eight-week trend of exits – the longest streak on record for any digital asset product – after enjoying $ 58.9 million inflows for the week. Despite the bullish momentum shift, BTC investment products have seen exits for 14 of the last 17 weeks.
According to CoinShares estimates, Institutional asset managers currently represent a combined total AUM of $ 62.5 billion, which is close to the record of $ 66 billion recorded in mid-May.
The leading institutional asset manager, Grayscale continues to dominate the competition, accounting for 73% of the industry’s combined AUM at $ 46.2 billion..