According to the latest data shared by CoinShares, institutional investors are leaving 4 altcoin projects. Investors started selling their funds in these cryptocurrencies. As a result, last week, there was an outflow of $5 million in the crypto market. The biggest exits were in Short Bitcoin, Ethereum, Binance Coin and Solana. Here are the details…
Institutional investors exit these altcoin projects
In digital asset investment products, there was a total outflow of $5 million last week. However, the fact that most of the outflows came from short-term investment products indicates that the sentiment is positive. The data shows that investors are waiting for signs that the Fed will pull back from its hawkish monetary policy. Meanwhile, altcoin volumes are sliding towards historical lows. Entries in digital asset investment products are centered around Bitcoin.
The leading cryptocurrency saw $12 million in inflows last week. However, when it comes to exits, Short Bitcoin is in the leading position. Short Bitcoin witnessed $ 15 million exit. This represents 10% of the total assets under management (AuM). Short Bitcoin is followed by Ethereum in losses. Institutional investors sold $2.2 million in the leading altcoin project last week. ETH was followed by Binance Coin with $ 0.5 million and Solana with $ 0.2 million.
What do exits in Ethereum mean?
Ethereum saw a total outflow of $2.2 million last week. Accordingly, institutional investors are still hesitant for the leading altcoin after the Merge upgrade. Also, recent feedback from customers raises concerns about ETH being declared a security. As Kriptokoin.com, ETH switched to Proof-of-Stake mechanism with Merge. Following this, SEC Chairman Gary Gensler said that ETH could be classified as a security.
The biggest entries came from Germany
On a country basis, Germany was the country with the most entries, with a total of US$2.9 million. Exits came from Sweden and Canada with US$6.4 million and US$4.4 million, respectively. In addition to Germany, Switzerland and the USA also found a place in the entries. The two countries witnessed inflows of around $1.3 million and $1.2 million, respectively.
The lowest activity was seen in altcoin projects
There has been little activity in altcoin projects over the past week, with minor exits for Polkadot and Solana. Despite the poor performance of tech stocks overall, $1.6 million of equity capital was used in small entries in Blockchain ETPs. ETPs have seen a total of $157 million in inflows this year. Meanwhile, XRP and Binance Coin were among the assets that had exited.
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