Net inflows into digital asset funds totaled a relatively tepid $74 million last week after a month of volatility in cryptocurrencies sent investors off to the sidelines. The latest positive, albeit anemic, figure follows record outflows for the previous two weeks totaling $151 million.
However, demand for altcoin investment products is picking up, suggesting investors are starting to diversify outside of bitcoin funds, according to a report published by CoinShares on Tuesday.
- “Ethereum achieved its highest market share, peaking at nearly 27% of all investment products last week,” wrote CoinShares.
- While bitcoin investment products saw minor outflows of $4 million last week, investors have rotated into proof-of-stake digital asset funds in cardano, polkadot and XRP, which remain popular with inflows.
- Overall, “the price correction had a minor impact on investment flows the previous week, but this looks to have recovered, with all product providers seeing inflows,” according to CoinShares.