Institutional investors have shown a preference for XRP, Solana (SOL), and Cardano (ADA) in 2023, according to CoinShares’ latest Digital Asset Fund Flows report. The report reveals that these altcoins have received more investment from institutional investors than any other altcoin, including Ethereum (ETH). In the past week alone, SOL and XRP saw inflows of $3.7 million and $0.4 million, respectively. Year-to-date, the three altcoins have received inflows of $59 million, $15 million, and $6 million, respectively. In comparison, Bitcoin (BTC) has received $260 million in inflows while Ethereum is currently in the negative with outflows of $111 million.
Continued Inflows for XRP
CoinShares also notes that XRP has seen 25 consecutive weeks of positive inflows from institutions. This shows strong support from the investment community despite legal challenges against the cryptocurrency by the SEC. However, last week was not positive for altcoins overall, as Tezos, Litecoin, and Chainlink saw outflows totaling $0.25 million, $0.28 million, and $0.31 million respectively.
Regional Divide in Inflows
The report highlights a regional divide in inflows, with minimal inflows into the US while Europe saw net inflows totaling $7 million last week. Sweden was the only country to experience outflows.
Hot Take: Solana, XRP and Altcoins Attracting Institutional Investors
XRP’s consistent positive inflows from institutions demonstrate ongoing support for the cryptocurrency despite legal challenges it has faced. Solana and Cardano are also attracting institutional investors, indicating growing interest in alternative cryptocurrencies beyond Bitcoin and Ethereum. This trend reflects the increasing maturity and diversification of the digital asset market as institutional players seek exposure to a wider range of assets. As more institutions enter the space, it will be interesting to see how this impacts the overall market dynamics and the performance of these altcoins.
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