Data Shows Institutional Investors Diversifying Out of Bitcoin and Into Ethereum & Other Altcoins

Bitcoin is the only one to record outflow, that too the largest ever; meanwhile, Ethereum and other cryptocurrencies, especially ADA and DOT, continued to see inflows last week, as per the CoinShares report.


Crypto asset investment products registered a net outflow of $50 million last week, the first since October last year and the largest since May 2019.

However, “historical data implies that outflows of this nature have not marked pivotal points in sentiment change for digital assets,” notes CoinShares in its weekly report.

Interestingly, Bitcoin (BTC) investment products were the only ones to record outflows at $98 million, 0.2% of total assets under management (AUM). While small, this represents the largest outflow recorded, with the second-largest at $19 million in May 2019. BTC -3.48% Bitcoin / USD BTCUSD $ 42,618.22
-$1,483.11-3.48%
Volume 41.81 b Change -$1,483.11 Open $42,618.22 Circulating 18.82 m Market Cap 802.29 b
16 min Crypto Investors Approaching Large Institutions in Bond Market for Loans Against Digital Assets 1 h Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 1 h Twitter Chooses “Global, Barrier-Less Option” for Tipping and to Help Creators Join the “Decentralized Internet”

Total Bitcoin inflows amounted to $4.3 billion for the year, while last year, investors pumped $15.6 billion into Bitcoin funds and products, and Ethereum inflows reached almost $2.5 billion.

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Unlike Bitcoin, all the other digital asset investment products continued to see inflows totaling $48 million last week. The data implies that “investors have been diversifying out of Bitcoin and into altcoin investment products,” it states.

The investment vehicles for the second-largest cryptocurrency, Ether, continued to see continued inflows, gathering $27 million last week. The products also had Ethereum trading volumes at the largest ever, totaling $4.1 billion for the week.

This has been the first time that there have been more investment product trading volumes in Ethereum relative to Bitcoin, which only recorded $3.1bn last week.

“Bitcoin's perceived environmental costs are becoming a bigger and bigger part of the narrative, boosting the relative appeal of ethereum and its upcoming transition to the less energy-intense proof-of-stake security model,” said Matt Weller, global head of market research at Forex.com.

Besides Ethereum (ETH), Cardano (ADA) and Polkadot (DOT) remain the most popular and recorded inflows of $6 million and $3.3 million respectively.

ETH -6.58% Ethereum / USD ETHUSD $ 2,930.15
-$192.80-6.58%
Volume 25.07 b Change -$192.80 Open $2,930.15 Circulating 117.66 m Market Cap 344.75 b
1 h Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 2 h JPMorgan says Institutional Investors Have Shown A 'Strong Preference' for Ethereum Over Bitcoin Since August 20 h 1Inch Moves to Arbitrum For Faster Throughput And Lower Gas Fees  
ADA 0.43% Cardano / USD ADAUSD $ 2.26
$0.010.43%
Volume 5.77 b Change $0.01 Open $2.26 Circulating 32.04 b Market Cap 72.35 b
1 h IOHK to Launch a dApp Marketplace and Fractional NFTs on Cardano (ADA) Blockchain 4 d JPMorgan says Ether Is Overvalued at Current Prices and DeFi’s Institutional Adoption Is Above 60% 6 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero
DOT -2.15% Polkadot / USD DOTUSD $ 31.10
-$0.67-2.15%
Volume 3.78 b Change -$0.67 Open $31.10 Circulating 987.58 m Market Cap 30.71 b
2 d Deutsche Boerse Expand Crypto Offering to Include Polkadot (DOT), Solana (SOL), and Tron (TRX) ETNs 6 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 1 w Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows

Grayscale remains the largest digital asset manager with $47.268 million in assets, which saw zero inflows not only last week but also so far in May.

CoinShares, the second-biggest and largest European digital asset manager, oversaw about $6 billion as of last week, which along with 3iQ, ETC issuance, and Purpose Investments, all recorded more outflows last week than inflows, with 21 Shares being the only exception to that.

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