Solana, XRP and Cardano receive $16 million weekly inflows as Bitcoin sees outflows
|- Solana, XRP and Cardano funds received a weekly inflow of $16.3 million, Bitcoin funds suffered $32.8 million outflows.
- CoinShares’ report suggests that overall outflows are related to profit-taking, while investor sentiment remains bullish on crypto assets.
- Bitcoin suffered nearly 7% weekly price decline while Solana, XRP and Cardano dropped between 6% and 11%.
Crypto funds noted its first outflows last week after eleven consecutive weeks of massive inflows of capital from institutional investors, according to data from CoinShares. The decline was mainly driven by a recent round of outflows in Bitcoin funds. While BTC funds saw $32.8 million in investor capital exit, altcoins bucked the trend and noted an inflow from investors.
Also read: Bitcoin price dips below $41,000 on Monday amidst BTC transaction fee surge
Altcoins shine in institutional investors’ weekly crypto fund flows
Bitcoin price suffered a pullback of nearly 7% in the past week. Altcoins such as Solana (SOL), XRP and Cardano (ADA) noted similar drops in prices. Based on CoinShares’ fund report, institutional investors poured capital in altcoins like Solana, XRP and Cardano despite the weekly decline in these assets’ prices.
SOL, XRP and ADA noted a combined inflow of $16.3 million, according to the report released early on Monday.
Fund flows by asset. Source: CoinShares December 18 report
Regarding Bitcoin’s outflows, analysts at CoinShares attributed them to profit-taking rather than a shift in sentiment among investors. BTC funds have received $1.6 billion year-to-date.
Alongside Bitcoin, altcoins like Ethereum (ETH) and Avalanche (AVAX) suffered an outflow as well. Despite the massive shift in fund flows, trading activity remained above the yearly average at $3.6 billion for the week, according to the report.
There is no direct correlation between fund flows and asset prices. While BTC funds noted mass outflows and SOL, XRP, ADA received inflows from investors, all four cryptocurrencies suffered a decline in their prices. SOL, XRP and ADA prices dropped 8.5%, 6.5% and 11.24%, respectively.
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