Expectations for a brutal second quarter for the cryptocurrency market this year are quite high. Therefore, institutional investors are back in the game once again. According to the latest report from CoinShares, the number of institutional monthly entries in crypto funds has increased. It also had its strongest period in 2022 during the month of July of 2022. However, although institutional investors are increasing, not every altcoin gets a share from it. According to the latest data, companies like and accumulate these altcoin projects the most. Here are the details…
Institutional entries on the rise
According to the data, all monthly entries in July 2022 equated to $474 million. In fact, these entries were making up for the previous month, June. In June, a total outflow of 481 million dollars was realized. July entries almost completely smoothed out June exits. Although the macroeconomic fluctuations have shaken the market for a long time, altcoin assets are taking a strong stance for August. Entries to the crypto money market are increasing, and accordingly, asset prices are rising. Bitcoin was in danger of falling below $20,000 two weeks ago. Now, the question of “Will it break $24,000” is being discussed.
Last week, products of cryptocurrencies saw net inflows of US$81 million. This came after the bear market of the second quarter of 2022. It was also the last round of entries lasting 5 weeks in a row. The net inflows over the five weeks had a value of $0.53 billion. That is, it accounted for 1.6% of total assets under management (AuM).
Institutional investors gravitate towards these altcoin projects
Last week, the leading cryptocurrency Bitcoin’s investment products saw huge inflows. BTC took the lead, posting a total net inflow of $85 million. However, short Bitcoin exits were also available in the market. Those exits were worth $2.6 million. The mentioned output has a special meaning. Bitcoin has been seeing continuous entry for the last 5 weeks. However, in the last week, the exit has also been experienced. The famous altcoin project Solana, which describes itself as the Ethereum Killer, has also made gains. However, Solana’s entries were quite low compared to Bitcoin. Layer-1 Blockchain network SOL has witnessed $1.5 million worth of institutional investor inflows. In addition, Solana has seen a total of $114 million in corporate inflows from the start of 2022 to date. It seems that altcoin is among the most favorite projects of institutions.
Another altcoin that institutional investors entered the most was Polkadot (DOT). The DOT saw a total of $0.4 million in entries last week. The bulk of institutional crypto inflows came from North America. However, more and more bullish moods are emerging in digital currencies. However, trade activity remains very low. As we have reported as Kriptokoin.com, despite the bullish mood, trading activity is declining and this creates investment risk. The average weekly trade volume this year was $2.4 billion. However, it has currently slumped to $1.4 billion. As a result, it is possible to see big changes in crypto money prices in August. We will see together whether the bullish rally around Ethereum’s Merge upgrade will continue this month.
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