Institutional Investor Bets on Cardano ($ADA) Quadruple as Bitcoin Shorts Growadmin
Institutional investor bets on Cardano-based investment products, offering them exposure to $ADA, have quadrupled from last week, at a time in which inflows to short Bitcoin products are rising significantly.
According to CoinShares’ Digital Asset Fund Flows report, digital asset investment products saw outflows totaling $63 million over the last week, marking the fifth consecutive week of outflows for these products. The outflows, the firm added, remain relatively small in size, with $99 million leaving over the last five weeks.
Trading volumes have nevertheless remained low as well, at 46% of the year’s average, with $1 billion being traded for the week. Regionally, the firm wrote, outflows were focused on Canada and the United States, while Europe was contrarian and saw inflows totaling $7 million.
When it comes to assets, the report shows that Ethereum saw outflows near the $62 million mark, despite improved certainty that the network’s Merge upgrade will occur later this week. To CoinShares, the drop may highlight “a concern amongst investors that the event might not go as planned.”
Bitcoin, on the other hand, saw outflows of $13 million, while Binance Coin ($BNB) saw outflows of $900,000. The week’s inflows were led by short Bitcoin products, which benefit from BTC price drops, with $10.6 million in inflows.
As for altcoins, Cardano ($ADA) led inflows with $400,000 being invested in products offering exposure to the cryptocurrency, in contrast to the $100,000 of inflows seen the week before. As CryptoGlobe reported, a popular cryptocurrency analyst suggested earlier this month that $ADA could outperform the market as investors started using the smart contract network to hedge against Ethereum’s transition from a Proof-of-Work (PoW) consensus algorithm to a Proof-of-Stake (PoS) one.
Year-to-date, Cardano-based investment products have seen $14.1 million in inflows. Other altcoins, including Solana ($SOL) and $XRP also saw inflows of $300,000 and $100,000 respectively, while multi-asset investment products saw inflows of $200,000.
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