IMPORTANT POINTS:
- Institutional Preference 2023: Solana, XRP and Cardano surpass Ethereum in investments according to CoinShares.
- Bitcoin vs. Dynamics Ethereum: BTC accumulates inflows of 260 million, while ETH registers an outflow of 111 million.
- XRP Consistency: 25 consecutive weeks of positive inflows, strengthening its position after legal challenges with the SEC.
The dynamics of the crypto market in 2023 have witnessed significant movements, and according to CoinShares, a leading digital asset manager, there are some altcoins that are clearly capturing the attention of institutional investors.
Favorites on Ethereum
In a recent report titled “Digital Asset Fund Flows,” CoinShares reveals that Solana (SOL), XRP, and Cardano (ADA) coins have been the most favored by institutional investors this year. Surprisingly, these altcoins have surpassed Ethereum (ETH) in terms of investments.
Solana, XRP, and Cardano have recorded inflows of $59 million, $15 million, and $6 million to date, respectively. In contrast, last week, SOL and XRP had inflows of $3.7 million and $0.4 million, while ADA showed no recorded inflows.
Bitcoin Vs. Ethereum: An Investment Comparison
While these altcoins experience a boom in investments, Bitcoin (BTC) continues to dominate the scene with inflows of 260 million during the same period. However, Ethereum has taken a hit, with net outflows of 111 million, indicating a shift in institutional investment preferences.
Third Week of Positive Inputs
The overall outlook for the crypto market has been positive, with the third consecutive week of inflows. Despite this increase, CoinShares points out that trading volumes are still 27% lower than the annual average for 2023. When analyzing regional trends, Europe leads in inflows with 7 million last week, while Sweden is the only one to register Departures.
XRP: The Chosen One for 25 Weeks
One notable data point in the report is the consistent performance of XRP. The cryptocurrency has had 25 straight weeks of positive inflows, highlighting strong support from the investment community, especially following victorious legal challenges against the SEC.
On the other hand, altcoins such as Tezos, Litecoin and Chainlink saw outflows in the previous week, totaling 0.25 million, 0.28 million and 0.31 million respectively, showing diversity in investment decisions.
Investment trends in 2023 demonstrate a change in the preferences of institutional investors in the crypto world. While some altcoins gain traction, others, like Ethereum, face challenges. CoinShares continues to be a valuable source of insights in this dynamic market.
