Institutional demand for altcoin exposures has risen to record levels, with altcoin market share now accounting for a record 35% of the capital tied up in crypto investment products.
According to CoinShares’ September 7th, Digital Asset Fund Flows Weekly Report, nearly 40% of last week’s inflows into Digital Asset Investment Products were attributed to instruments tracking altcoins.
While a combined total of $ 97.8 million was invested in crypto investment products between August 30 and September 3, marking the third straight week of inflows into the sector, $ 38.9 million was invested in altcoin Products invested.
The past week has also seen a sizeable surge in institutional crypto investments, with inflows of $ 24 million and $ 21 million, respectively, over the past two weeks.
Approximately 35% of the capital invested in institutional crypto investment products is currently tied up in instruments tracking assets other than Bitcoin – including a re-test of the metric’s all-time high from May.
Ethereum (ETH) tracking products topped the altcoin package for the second straight week, posting inflows of $ 14.4 million, down 16.2 percent from $ 17.2 million the previous week.
Weekly inflows for Solana (SOL) -based products rose a whopping 388%, with SOL products absorbing $ 13.2 million. This coincided with SOL’s share price gain of 37% over the same period.
CoinShares highlighted that Solana product inflows have doubled in the past week year-to-date (YTD), with $ 25 million invested in SOL instruments so far throughout 2021. SOL-based products now represent $ 44 million in total 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 an eight-week outflow trend – the longest streak ever for a digital asset product – after inflows of $ 58.9 million for the week. Despite the bullish shift in momentum, BTC investment products have seen outflows for 14 of the last 17 weeks.
Related: The total market capitalization of public crypto stocks has quadrupled since January
CoinShares estimates that institutional asset managers currently represent total assets of $ 62.5 billion combined – approaching the record high of $ 66 billion seen in mid-May.
Leading institutional asset manager Grayscale continues to dominate the competition, representing 73% of the sector’s combined AUM of $ 46.2 billion.