Institutional investors have dumped cryptocurrency investment products offering them exposure to top digital assets like Bitcoin ($BTC) and Ethereum ($ETH) over the past week, but have notably kept raising bets on products offering exposure to altcoins like $XRP, Solana ($SOL), Litecoin ($LTC), and Polygon ($MATIC).
According to CoinShares’ latest Digital Asset Fund Flows report, this was the sixth week of outflows for digital asset investment products, totaling $95 million and leading to a 5-week total of $406 million. The figure represents 1.2% of total assets under management.
While the price of BTC has been rising significantly, institutional investors dump BTC-related products, to the point outflows were $113 million this past week. The price rise has been such that total assets under management for these products rose 32% over the week.
Similarly, Ethereum products saw $13 million of outflows last week. Other altcoins, however, bucked the trend and saw a total of $1.3 million in inflows. $XRP products stood out with $400,000 in inflows, while products offering exposure to SOL, MATIC, and LTC saw $200,000 in inflows each.
According to the firm, the outflows of major digital assets were likely related to a need for liquidity. Notably, products shorting BTC saw weekly inflows of $34.7 million, as bets against the flagship cryptocurrency rise.
As CryptoGlobe reported, bets on XRP and SOL investment products grew the past week as well, while BTC products were seeing outflows. Solana has been seeing whale movements over the last few days, with a SOL whale recently depositing $10.2 million worth of the smart contract platform’s native currency to Coinbase, a leading US-based cryptocurrency exchange.
Earlier this month, a cluster of massive Solana whale wallets transferred over $60 million worth of $SOL to the Nasdaq-listed cryptocurrency exchange in a series of transactions that suggests the funds were moved by a single entity.
XRP, on the other hand, has been performing well after Ripple’s Chief Legal Officer Stuart Alderoty explained that the most recent ruling in the U.S. Securities and Exchange Commission’s (SEC’s) lawsuit against Ripple has left him feeling more confident than ever about Ripple’s chances of winning.
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