Institutional Investors Buying Cardano (ADA), XRP, and Polkadot (DOT) As the Crypto Market Struggles to Recover
Investors seemed to be taking full advantage of the recent dip by increasing additional Crypto positions. While Bitcoin and Ethereum, are slowly but surely emerging from their consolidation period. It’s a favourable indicator for the markets because most other altcoins tend to follow bitcoin and Ether’s price swings.
Data from Digital Manager at Coinshares in a recent report states that with the net inflows into investment products of US$74 million last week, investors were driven to add positions as digital asset prices fell. This comes after record withdrawals of US$151 million in the preceding two weeks, or 0.34 percent of assets under management.
Bitcoin investment products, which witnessed slight withdrawals of US$4 million last week, continue to see withdrawals. This takes the three-week cumulative outflow to US$246 million, or 0.8 percent of assets under management. Inflows into bitcoin investment products are expected to surpass US$4.4 billion in 2021.
With inflows into Cardano, Polkadot, and Ripple, investment product flows revealed that altcoins, or non-bitcoin, non-ether tokens, remained popular.
According to the data, with inflows of US$5.2 million, US$3.8 million, and US$4.5 million into Cardano, Polkadot, and Ripple, respectively.
Last week, Ethereum had a total inflow of US$47 million with total inflows totaling $973 million.
The previous week’s price adjustment had a slight impact on investment flows, but this appears to have recovered, with inflows to all product providers. Last week, Ethereum reached its largest market share, accounting for approximately 27% of all investment products.
Following a setback, ETH has resumed its upward trajectory and is currently trading at $2,800 levels. The asset’s price has been range-bound this week, fluctuating between $2,600 and $2,900.