Institutional Investors Favor ETH and ADA While BTC Outflows Continue. What Does it Mean for BTC?

7:12 am, Tue, 31 August 21

Current Bitcoin Data

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Bitcoin, Ethereum and Cardano are currently the top three crypto assets in this particular order. Cardano has outperformed other digital currencies and is anticipated to do so in the future, thanks to its Alonzo Upgrade.

All three of the cryptocurrencies mentioned above have intrigued major and minor crypto investors, especially institutional investors. However, Bitcoin is currently experiencing more institutional outflows than inflows.

Bitcoin is the largest digital asset in the world and is currently trading at $47,272 (at the time of writing).

On the other hand, Ethereum is the second-largest cryptocurrency and is currently trading at $3,243 (at the time of writing).

Therefore, if you are interested in buying Bitcoin or Ethereum, you can click on SwissBorg or Kraken (U.S. citizens).

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What are Details to Know About Institutional Inflows and Outflows?

According to the data of the past week, Ethereum and Cardano have prevailed inflows to institutional crypto investment products.

CoinShares is an institutional asset manager and as per reports, it has identified that the overall inflows have been of altcoin-based investment products. To be precise, the overall inflows have been $24 million this week and $21 million last week. This is a 14.3% increment in the investment towards altcoin products observed this week.

Ethereum has been quite noticeably preferred by the institutional investors and Cardano has not been far behind either.  

According to reports, there has been an inflow of $17.2 million for Ethereum-based products this week. Meanwhile, the weekly inflows of Cardano-based products have reportedly been $10.1 million. The ADA-based institutional funds now hold 0.15% of the total capital in crypto investment products combined.

The most prominent reason for the increase in ADA inflows is its Alonzo Upgrade, which is set to be launched on September 12th. With the help of this upgrade, the network will offer smart contracts for the first time. Therefore, if you want to invest in ADA, make sure you look for some of the best crypto exchanges to buy Cardano.

Other altcoins that have seen an increase in inflows include:

  • Polkadot-based funds ($1.5 million)
  • Solana-based funds ($2.7 million)

While this is quite positive news for altcoin enthusiasts, Bitcoin has not experienced any inflows at all. The flagship crypto asset has seen outflows for 14 weeks out of the last 16 weeks.

There has been a loss of $3.8 million for this period, noted for the BTC-based products.

The Bitcoin fund that is owned by CoinShares itself has seen an outflow of $14.5 million, which is the heaviest loss in the last week.

Should the BTC Investors and Traders be Concerned?

Bitcoin is the most prominent cryptocurrency in the market and has experienced quite some price fluctuations. After struggling to touch the $40,000 region for weeks, it not only crossed it but also briefly reclaimed $50,000.

Here is a graph by CoinGecko that shows the ups and downs in BTC’s price over the last month.


Despite the surge in BTC’s price, the outflows have only continued, which has concerned some BTC investors and traders.

However, it is important to consider that many major entities have also been accumulating the flagship digital currency, despite its price. This can be taken as a positive indication for many as the crypto space is an unpredictable place and nothing can be said with certainty at the moment.

Therefore, if you have been planning to purchase Bitcoin or Ethereum, you can look up some of the top crypto exchanges.

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Crypto enthusiasts who have been planning to invest in Cardano can click on Binance or Kraken (U.S. citizens) and purchase it.

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