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Institutional investors mainly focus on 2 altcoin projects besides Bitcoin. A new CryptoCompar report shows investors changing direction amid falling volume.
Institutional investor class invest in these 2 altcoin projects
According to the data, institutional investors have started targeting Bitcoin and investing in XRP and ADA. In September, this group of investors had the opportunity to buy BTC again. They collected XRP, ADA and several other cryptocurrencies at the discounted price. CryptoCompare’s latest review on Digital Asset management highlights that the average daily volume for Traded Items (ETPs) across all exchanges has dropped below one million after falling nearly 80% from the high recorded in January 2022.
The reports state that institutional investors looking to take regulated risk in the cryptocurrency market may “turn to an increasing number of cryptocurrency investments,” such as those highlighted in the report, and that these “cryptos are more accessible to investors because they can be traditionally traded.”
According to the report, Short Bitcoin products “corresponding (-1x) to the daily performance of the Bitcoin future index” reflect an increase in holdings under management in September 2022, along with the ProShares Short Bitcoin Strategy ETF (BITI). 21Shares Short Bitcoin ETP (SBTC) has seen an increase of $18.9 million.
Investors prefer BTC products to protect their funds
CryptoCompare’s report shows that investors are trying to hedge falling prices with Bitcoin products. Institutional investors have the following stance on hedge:
As macro conditions worsen and the price of major crypto assets continues to trend downward, investors are likely to turn to short Bitcoin products to profit or hedge their crypto holdings. 21Shares SBTC was the only exchange-traded product that posted a positive 30-day return, up 5% this month.
Prior to the successful completion of the Ethereum merge, it was believed that the price of Ethereum-linked crypto could rise and the current state of the crypto market would also improve. Still, in the last 30 days, the crypto market has been struggling. So far, around 70% of cryptocurrencies have lost their price by 10%.
Institutional money flows into these 2 altcoin projects
Institutional investors posted average weekly net inflows of $1.5 million in multiple asset management products. The average weekly net inflow for XRP investment products alone was $200,000. They are betting on a wide range of the crypto market, similar to the introduction of the Cardano investment product.
cryptocoin.comAs you follow, Bitcoin is trading at $19,261.43 at the time of writing, Meanwhile, Cardano (ADA) is trading at $0.4301 and Ripple (XRP) at $0.4751.
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