As Bitcoin entries total $ 225 million, Ethereum and smaller altcoins lose funds
With another positive week for Bitcoin, digital assets-related investment products saw inflows totaling $225 million, which makes it the eighth consecutive week of positive inflows to the market, according to the CoinShares blog. With funds constantly attracting new investment to the cryptocurrency market, the total number of assets under management is only 5% below the ATH of $ 67 billion.
With sentiment change in the U.S. and official rhetoric about Bitcoin and digital assets in general, the cryptocurrency market faced a strong recovery. The increase in inflow rates is most likely related to statements by SEC Chairman Gary Gensler, who gave a hint about the possibility of authorizing a Bitcoin ETF in the United States.
With a more positive fundamental view on the digital assets industry from regulators like the SEC, institutional investors are more likely to enter the market. Previously, many representatives of large banks have said that their clients are eager to enter the digital asset market in order to diversify their investment portfolios.
While Bitcoin inflows are showing a strong positive trend, Ethereum is facing a slight loss of $14 million being moved away from altcoins. With Bitcoin prices rising sharply, Ethereum’s market share is steadily declining; in addition, the number of assets under management fell by 1%.
Though Ethereum is losing its previously established market share, altcoins like Solana and Cardano are continuously rising and seeing strong inflows. Currently, the Solana network is chosen by the majority of the NFT community due to lower fees than Ethereum. Cardano’s growth is based on the rapid development of the network after the smart-contract technology release. Other smaller altcoins, like Ripple, Litecoin, and Polkadot, also faced cash outflows, losing around $ 3 million in total.
It was a mixed picture for other altcoins with recent favorites Solana (U.S. $12.5 million) and Cardano (U.S. $3 milllion) continuing to see inflows, suggesting the focus has not entirely switched to Bitcoin. The other altcoins namely Polkadot, Ripple and Litecoin did not fare as well, with outflows of US $ 2.1 million, US $ 0.6 million and US $ 0.2 million, respectively.
