$XRP and Cardano ($ADA) Shine as Bitcoin Investment Products See Outflows

In a reversal of a recent trend, long-Bitcoin investment products have represented 93% of the outflows of cryptocurrency investment products, while short Bitcoin products saw their 14th consecutive week of outflows. Products investing in $XRP and Cardano ($ADA), meanwhile, attracted significant inflows.

According to CoinShares’ latest Digital Asset Fund Flows report, institutional investors have seemingly preferred altcoins over the past week, with the exception of Ethereum. Altcoin recorded inflows of $3 million over the past week, and $19 million over the past eight weeks.

Funds investing in Cardano, Solana ($SOL), and XRP have seen significant inflows, raking in $640,000, $600,000, and $500,000 from investors last week. In contrast, Ethereum-focused funds saw $1.9 million in outflows, while Avalanche ($AVAX) investment funds saw $400,000 in outflows.

The wider digital asset investment product market saw a small pullback, with minor outflows totaling $21 million last week. Trading volumes for digital asset investment products slumped to $915 million for the week, significantly lower than the $1.5 billion weekly average observed so far this year.

This downward trend in volume was mirrored in the broader Bitcoin market, which saw a total of $16 billion traded last week on trusted exchanges, a considerable drop from the $52 billion weekly average for the year to date.

Despite this subdued activity, digital assets have managed to pull in just under $500 million of inflows in the first half of the year the report adds. Notably, this past week North America was the epicenter of negative sentiment, witnessing $11 billion of outflows.

Investment products focusing on XRP and ADA may be seeing increased inflows over a recent ruling that saw a federal judge deem XRP is not necessarily a security, prompting investors to move into the token as it was relisted on a number of large exchanges.

As reported, CCData’s latest Digital Asset Management Review report products focusing on XRP saw a 33.2% rise in inflows, taking their assets under management to $65.7 million.

Notably, the number of XRP holders with at least one million tokens on the cryptocurrency’s ledger has now surpassed the 1,900 mark as an accumulation trend set off earlier this month was triggered by an uptick in investor sentiment.

Cardano’s ADA may have benefited from the ruling as well, as the cryptocurrency was named a security in recent lawsuits the U.S. Securities and Exchange Commission (SEC) filed against leading cryptocurrency exchanges Binance and Coinbase.

Moreover, Cardano was mentioned as one of the top cryptocurrencies when it comes to its ESG score by CCData’s ESG Benchmark report. The report was topped by Ethereum ($ETH) and was followed by SOL and ADA.

Featured image via Unsplash.

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