Institutional exposure to altcoin products re-hits record high

Institutional demand for altcoin exposure has reached record levels, with altcoin’s market share now a record 35% of the capital locked i...



Institutional demand for altcoin exposure has reached record levels, with altcoin’s market share now a record 35% of the capital locked in crypto investment products.

According to September 7 from CoinShares Weekly digital asset fund feeds report, nearly 40% of last week’s entries in digital asset investment products were allocated to altcoin tracking instruments.

While $ 97.8 million was invested in combined crypto investment products between August 30 and September 3 to mark the third consecutive week of entries, $ 38.9 million was invested in altcoin products.

Institutional crypto investment last week also increased significantly, with the previous two weeks seeing inflows of $ 24 million and $ 21 million respectively.

Around 35% of the capital invested in institutional crypto investment products is currently stuck in non-Bitcoin asset tracking instruments – including a retest of the metric’s all-time high from May.

Ethereum (ETH) Tracking products dominated the altcoin pack for the second week in a row, registering entries of $ 14.4 million, down 16.2% from $ 17.2 million the week before.

There was a whopping 388% spike in weekly entries for Solana-based (SOL) products, with SOL products absorbing $ 13.2 million. It coincided with the price of SOL 37% gain over the same period.

CoinShares pointed out that entries into Solana products have doubled since the start of the year (YTD) last week, with $ 25 million invested in SOL instruments throughout 2021 so far. SOL-based products now represent $ 44 million in assets under management (AUM).

Funds based on Cardano (ADA) and Polkadot (DOT) also saw notable inflows of $ 6.5 million and $ 2.7 million respectively.

Bitcoin (BTC) investment products resisted the eight-week cash outflow trend longest streak ever recorded for any digital asset product after receiving an influx of $ 58.9 million for the week. Despite the bullish change in momentum, BTC investment products posted releases for 14 of the past 17 weeks.

Related: The total market capitalization of public crypto stocks has quadrupled since January

According to CoinShares estimates, institutional asset managers currently have a combined total of $ 62.5 billion in assets under management, close to the record high of $ 66 billion recorded in mid-May.

Top Institutional Asset Manager Grayscale continues to dominate the competition, accounting for 73% of the industry’s combined assets under management at $ 46.2 billion.