Investors look to Cardano and Polkadot amid BTC withdrawals
According to CoinShares, investors are withdrawing funds from bitcoin and investing in Cardano and Polkadot. The company’s report states that the capital outflow from cryptocurrency assets reached $141 million last week. Analysts believe that the current market volatility has become a prerequisite for a bearish trend among investors.
In the Americas, the outflow of funds from crypto funds amounted to about $154 million, and in Europe there was an inflow of $12.4 million. Experts indicate that the total amount of digital assets under management is at around $38 billion.
At the same time, analysts say that the movement of capital since the beginning of this year remains positive at $307 million.
“This year, the outflow of funds from multi-asset investment products was only two weeks, which is much less compared to other products. We believe that investors consider multi-currency investment products safer than single-currency investment products during periods of instability,” CoinShares noted.
Analysts drew attention to the influx of funds in the altcoin market. Most of all, institutional investors were interested in Cardano and Polkadot, but it is too early to talk about a trend that has formed. Each of the projects raised $1 million.
In addition, XRP raised $700k, SOL raised $500k, and Litecoin raised $100k.
And the FRS experts concluded that the majority of US residents consider digital assets an investment tool, and not a means of payment. The regulator’s report states that 12% of adult Americans have interacted with digital currencies. But only 2% of them used crypto assets for purchases.
And what about you, are cryptocurrencies a payment instrument or an investment asset for you?