Altcoins are becoming increasingly attractive for institutional investors. Solana recorded the largest inflow of capital in crypto investment products.
The upward trend is causing the total market capitalization of all crypto assets in a 24-hour comparison to increase by 0.5 percent to 2.2 trillion US dollars. However, only the Altcoins can benefit from this, the workhorse Bitcoin buckled by 0.5 percent after yesterday’s ride above the 50,000 mark and thus slipped to 49,779 US dollars at the time of going to press. Among the remaining top 10 coins, Solana (SOL) posted the largest price increase of 5.6 percent, while Cardano (ADA) set a new record high of 2.95 US dollars in the morning hours.
Bitcoin futures are picking up
The BTC price development of the past few days has again attracted more investors to the futures markets. Like the on-chain data platform Glass node writes, open interest – the amount of all open positions for both futures and options – has “hit new local highs”.
After falling sharply from the $ 27.4 billion all-time high during the May sell-off, open interest in the Bitcoin futures markets is up $ 6 billion (+56 percent) from recent consolidation lows. This week in particular, $ 1 billion in futures contracts opened as traders begin to leverage more leverage.
In the case of Bitcoin options, too, in which buyers do not enter into any obligation, unlike futures, open interest has risen by over 4.1 billion US dollars to a “multi-month high,” says the Swiss analysis platform.
The current level of US $ 8.0 billion in open contracts is similar to that during the May sell-off and January to February 2021. Note that prices were lower in these two cases, at US $ 30,000 to US 40,000 -Dollars were.
Solana on the menu of institutional investors
But trading activities are not only increasing on the futures markets; demand for crypto investment products is also growing. The assets under management (AUM) of all crypto investment products are at 57.3 billion US dollars, their highest level since May and for the first time in six weeks they recorded a net inflow of 21 million US dollars.
The focus of institutional investors seems to be shifting from Bitcoin to Altcoins at the moment. As asset manager Coinshares calculates, Bitcoin investment products from providers such as Grayscale, Coinshares, or 3iQ have a deduction of 2.8 million US dollars. In contrast, Solana posted the largest inflow in the past week with 7.1 million US dollars. Behind them are Cardano with 6.4 and Ethereum with inflows of 3.2 million US dollars.