Cryptocurrency investment products offering investors exposure to the smart contract platform Cardano ($ADA) saw significant inflows of $3.7 million over the past week, but failed to keep up with the inflows seen for BTC, ETH, and multi-asset investment products.
According to CoinShares’ latest Digital Asset Fund Flows report, cryptocurrency investment products saw $151 million of inflows in the first week of the year, with Bitcoin seeing the largest inflows of $113 million. Over the past nine weeks, the firm noted, Bitcoin aw 3.2% of its total assets under management in inflows.
Ethereum-focused investment products, meanwhile, saw $29.6 million of inflows, while investment products focusing on multiple cryptocurrencies saw $5.4 million of inflows. As for other altcoins most saw modest inflows, with the exception of Cardano and Avalanche ($AVAX), with $3.7 million and $2 million respectively.
Blockchain equities have also begun the year well, attracting $24 million of inflows in the past week, according to the report. Bitcoin-focused investment products likely brought in the lion’s share of inflows amid expectations a spot Bitcoin exchange-traded fund (ETF) could soon be approved in the United States.
Bitcoin ETF proponents believe such a fund could bring in institutional and retail investors who have been on the sidelines, as it allows them to gain exposure to the cryptocurrency without dealing with any private keys.
Cardano-focused products, meanwhile, likely outperformed most other altcoins when it comes to inflows over the token’s recent developments, which include it maintaining its top stop in cryptocurrency development activity after surpassing the “blockchain of blockchains” Polkadot ($DOT) and its public pre-production environment Kusama ($KSM).
Cardano has also been seeing its decentralized finance (DeFi) ecosystem grow steadily over time, with last year seeing a spike from around $50 million in total value locked to over $400 million. At the time of writing, it’s at $350 million.
Featured image via Unsplash.
