Institutional Investment in Crypto Assets Rebounds, Attracting Millions of Dollars into Altcoin Products

CoinShares, a prominent crypto asset management and research firm, reported a significant rebound in institutional investment last week

CoinShares, a renowned crypto asset management and research firm, has unveiled a substantial rebound in institutional investment last week, with millions of dollars flowing into altcoin products.

In their latest Digital Asset Fund Flows Weekly Report, the firm reports that after a week of record outflows, the digital asset market experienced a notable resurgence.

The past week saw investment products collect net inflows of $226 million, highlighting a cautious yet optimistic sentiment among investors. This comes after a sharp outflow last Friday, spurred by the U.S. personal consumption expenditures (PCE) report, which displayed higher-than-expected figures at 4.2% on an annualized basis for the quarter.

However, despite the setback, the overall trend remains positive, with exchange-traded products (ETPs) now experiencing nine consecutive days of inflows.

Bitcoin (BTC) continued to be the dominant asset, drawing in $195 million, a significant shift from last week when the narrative favored altcoins.

On the other hand, the past month has seen a persistent trend of outflows from altcoins, but this week saw a reversal.

Among altcoins, Ethereum (ETH), Solana (SOL), XRP, and Sui (SUI) were the primary beneficiaries, each receiving a part of the $33 million inflow into alternative digital assets. This marks the first inflow for altcoins after a prolonged period of outflows totaling $1.7 billion.

This week also saw the U.S. emerge as the largest contributor, reporting inflows of $204 million. Switzerland and Germany followed closely with additions of $14.7 million and $9.2 million, respectively.