Institutional investors are pouring money into altcoins like Cardano (ADA) and Ether (ETH) while demand for the world’s largest cryptocurrency Bitcoin (BTC) has come to a halt.
<h2 class="entry-title">Institutional Money Flowing Into Cardano and Ether</h2>
In its weekly report <a href="https://coinshares.com/research/digital-asset-fund-flows" target="_blank" rel="nofollow noopener">published</a> on Aug 30, digital asset manager CoinShares said that institutional investors made $24 million in investment in altcoin-based investment products over the last week.

Among the altcoins, Ether (ETH) remains the favorite among institutional investors with a weekly inflow of $17.2 million. While institutional <a href="https://www.cryptoknowmics.com/news/institutional-and-retail-investors-bullish-on-cardano-ada-know-reasons-behind-increased-demand/">investments</a> into Cardano-based (ADA) products saw the highest level of record of $10.1 million worth of inflows last week.

The capital flows mark the second consecutive week of inflows to altcoin-based funds. For instance, the total institutional investments have increased to $24 million this week, compared to the previous week’s investment of $21 million.

Altcoins including Ethereum and Cardano now account for 32% of the sector’s total assets under management (AUM). Prior to that, May recorded a total AUM of 35% for altcoin-based products.
<h2><strong>Bitcoin's Institutional Inflows Dries Up</strong></h2>
Ironically, Bitcoin which initially attracted <a href="https://www.cryptoknowmics.com/news/institutional-investors-are-still-concerned-about-bitcoin-security-survey/">attention</a> from institutional investors has continued to show outflows with a loss of $3.8 million for the 8<sup>th</sup> consecutive week. What's more, the digital asset has also seen serial 14 outflows out of the past 16 weeks amounting to $650 million.

CoinShares’ own Bitcoin fund saw the heaviest losses this past week with an outflow of $14.5 million while ETC Issuance saw the largest inflow at $14.1 million.

The amount of Bitcoin (BTC) held by institutional investors is currently at $77.8 billion. As of today, a total of 61 institutional investors have invested in Bitcoin. While some institutional investors have invested as low as 2 bitcoins, others have invested in thousands of BTC.

Of all the institutional investors, Grayscale is leading the pack with a whopping 654,885 bitcoins currently held by the trust. Its BTC holdings make up 118% of the total market cap of the trust.

Institutions Bet on Cardano and Ether as Bitcoin’s Demand Weakens

Institutional investors are pouring money into altcoins like Cardano (ADA) and Ether (ETH) while demand for Bitcoin (BTC) has come to a halt.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Institutions Bet on Cardano and Ether as Bitcoin’s Demand Weakens

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