Institutional exposure to altcoin products retests all-time high

Institutional demand for altcoin exposure has surged to file ranges, with the altcoin market share now representing a file 35% of capital locked in crypto funding products.

According to the Sept. 7 situation of CoinShares’ Digital Asset Fund Flows Weekly, practically 40% of the previous week’s inflows to digital asset funding products have been allotted to devices monitoring altcoins.

While $97.8 million was invested into crypto funding products mixed between Aug. 30 and Sept. 3 to mark the sector’s third consecutive week of inflows, $38.9 million was invested into altcoin products.

This previous week additionally noticed a sizeable enhance in institutional crypto investments, with the earlier two weeks recording inflows of $24 million and $21 million, respectively.

Roughly 35% of the capital invested in institutional crypto funding products is at present locked in devices monitoring property aside from Bitcoin — comprising a retest of the metric’s all-time high from May.

Ethereum (ETH) monitoring products led the altcoin pack for the second week in a row, recording inflows of $14.4 million, a 16.2% lower from the earlier week’s $17.2 million.

There was a whopping 388% spike in weekly inflows for Solana (SOL)-based products, with SOL products absorbing $13.2 million. This coincided with the worth of SOL gaining 37% over the identical interval.

CoinShares highlighted that inflows to Solana products doubled year-to-date (YTD) this previous week, with $25 million having been invested into SOL devices through the entirety of 2021 to date. SOL-based products now symbolize $44 million in whole property beneath administration (AUM).

Cardano (ADA) and Polkadot (DOT)-based funds additionally noticed notable inflows of $6.5 million and $2.7 million, respectively.

Bitcoin (BTC) funding products bucked an eight-week pattern of outflows the longest streak on file for any digital asset product after having fun with inflows of $58.9 million for the week. Despite the bullish shift in momentum, BTC funding products have posted outflows for 14 of the previous 17 weeks.

Related: The whole market cap of public crypto shares has quadrupled since January

According to CoinShares estimates, institutional asset managers at present symbolize a complete AUM of $62.5 billion mixed — nearing the file high of $66 billion posted throughout mid-May.

Top institutional asset supervisor Grayscale continues to dominate the competitors, representing 73% of the sector’s mixed AUM with $46.2 billion.