Institutions leaving Bitcoin and Ethereum turned specifically to these two altcoins
It can be seen that institutional investors were mainly shorting Bitcoin (BTC) throughout September, while they turned especially to XRP (XRP) and Cardano (ADA).
Institutions go short on Bitcoin
According to the latest “Digital Asset Management Review” report compiled by CryptoCompare, the average daily trading volume of all exchange-traded products (ETPs) reached 100 million for the first time in two years, down nearly 80% from the all-time high in January this year, falling below the US dollar. The report noted that institutional investors are increasingly likely to want to invest in the cryptocurrency market in a regulated manner. It was also pointed out that the products in question made cryptocurrencies more accessible to institutional investors because they could be traded on traditional exchanges.
The report shows that trading volume in Bitcoin short products increased significantly in September, corresponding to the inverse (-1x) of the daily performance of the Bitcoin Futures Index. The value of the ProShares Short Bitcoin Strategy ETF (BITI) rose 43.9% to $98.8 million, while the 21Shares Short Bitcoin ETP (SBTC) was valued at $18.9 million. Assessing these increases, the report said, “As the macro environment deteriorates and the price of the largest cryptocurrency continues its downward trend, investors may turn to shorting bitcoin products to profit or hedge their cryptocurrencies. 21Shares’ SBTC gains in value. 5% this month. It’s the only exchange-traded product with a positive 30-day return.” Note out.
2 Altcoins of particular interest to institutions
Investment products that offer investors the opportunity to invest in Ethereum have had one of their toughest months, with the largest altcoin network successfully switching from proof-of-work to proof-of-stake, all products have lost more than 30% in value over the past 30 days. 10%. Institutional investors, on the other hand, turned to multi-asset investment products, with an average weekly fund flow of $1.5 million, while XRP investment products saw the same flow of funds as ADA, with an average weekly net flow of $200,000. This shows that institutional investors are looking at cryptocurrencies other than Bitcoin and Ethereum.
Average weekly net outflows from BTC and ETH investment products were $2.2 million and $26.4 million, respectively. In terms of product types, the asset value of Grayscale-led trust fund products fell 12.5% to $17.3 billion, equivalent to 76.9% of the total value of cryptocurrency investment products. The value of assets represented by exchange-traded funds (ETFs) fell 21% to $2.25 billion in September, while exchange-traded bonds (ETNs) and exchange-traded commodities (ETCs) lost 10.5% and 10.5% in value, down 16.5 12.4 billion and $1.69 billion.
Source of information: Compiled from COIN-TURK by 0x information.The copyright belongs to the author Ömer Ergin and may not be reproduced without permission
