According to a new report, capital continued to flow into cryptocurrency investment funds last week as investors focused on altcoins, led by Solana and Avalanche.
Investors have mostly focused on Bitcoin, but last week funds with exposure to Solana and Avalanche received $3 million and $2 million, respectively, digital asset fund manager CoinShares said on Monday.
Renewed interest in Solana, the blockchain that underlies SOL, the sixth-largest cryptocurrency by market capitalization, and Avalanche, the network on which AVAX assets run, sparked renewed interest last month.
This depended on high-profile companies being interested in both networks. Investment bank giant JP Morgan said in November that it had tokenized its portfolio using the Avalanche blockchain. Visa and Shopify recently announced their use of Solana’s blockchain.
According to CoinGecko, SOL is currently trading at $69.99 and is down more than 4% in the last 24 hours. However, the coin rose 15% in 7 days. AVAX has risen much higher in the past week. It rose 66% to $36.25.
Over the past day, this cryptocurrency has been one of the best performing cryptocurrencies, rising 9% while the rest of the market is struggling.
CoinShares said its digital asset investment product recorded inflows of $43 million for the 11th consecutive week. These products include asset managers such as 21Shares, Bitwise, and Grayscale.
Investors are becoming even more attracted to Bitcoin, with $20 million invested in BTC products, bringing inflows to date to $1.7 billion, according to CoinShares.
Monday’s report added that the renewed interest in Ethereum, the second-largest cryptocurrency, was a “remarkable turnaround.” Seven weeks ago, investors were pulling money out of Ethereum products (there have been $125 million in outflows so far), but now they are back in the black. So far this year, deposits in the Ethereum fund total $19 million.
According to analysts, the reason for the renewed interest of large investors in the cryptocurrency space is that a Bitcoin exchange-traded fund (ETF) is likely to receive approval in the coming months.
These products will provide traditional investors with exposure to Bitcoin and the cryptocurrency world in a hassle-free and regulated manner.
As a result, the price of Bitcoin has soared this year.
Edited by Stacey Elliott.