Institutional demand for altcoin exposure has surged to record levels, with the altcoin market share now representing a record XNUMX% of capital locked in crypto investment products.
According to CoinShares’ Sept. XNUMX Digital Asset Fund Flows Weekly report, nearly XNUMX% of the past week’s inflows to digital asset investment products were allocated t instruments tracking altcoins.
While $XNUMX million was invested into crypto investment products combined between Aug. XNUMX and Sept. XNUMX to mark the sector’s third consecutive week of inflows, $XNUMX million was invested into altcoin products.
This past week also saw a sizeable increase in institutional crypto investments, with the previous two weeks recording inflows of $XNUMX million and $XNUMX million respectively.
Roughly XNUMX% of capital invested in institutional crypto investment products is currently locked in instruments tracking assets other than Bitcoin — comprising a retest of the metric’s all-time high from May.
Ethereum (ETH) tracking products led the altcoin pack for the second week in a row, recording inflows of $XNUMX million, a XNUMX% decrease from the previous week’s $XNUMX million.
There was a whopping XNUMX% spike in weekly inflows for Solana (SOL)-based products, with SOL products absorbing $XNUMX million. This coincided with the price of SOL gaining XNUMX% over the same period.
CoinShares highlighted that inflows to Solana products doubled year-to-date (YTD) this past week, with $XNUMX million having been invested into SOL instruments during the entirety of XNUMX so far. SOL-based products now represent $XNUMX million in total assets under management (AUM).
Cardano (ADA) and Polkadot (DOT)-based funds also saw notable inflows of $XNUMX million and $XNUMX million respectively.
Bitcoin (BTC) investment products bucked an eight-week trend of outflows - the longest streak on record for any digital asset product - after enjoying inflows of $XNUMX million for the week. Despite the bullish shift in momentum, BTC investment products have posted outflows for XNUMX of the past XNUMX weeks.
Related: The total market cap of public crypto stocks has quadrupled since January
According to CoinShares estimates, institutional asset managers currently represent a total AUM of $XNUMX billion combined — nearing the record high of $XNUMX billion posted during mid-May.
Top institutional asset manager Grayscale continues to dominate the competition, representing XNUMX% of the sector’s combined AUM with $XNUMX billion.