Cardano sees largest weekly inflows from institutional managers — CoinShares



Institutional inflows into Cardano (ADA) investment products rose sharply last week even as interest in Bitcoin (BTC) and Ethereum (ETH) waned, highlighting the growth of proof-of-stake assets amid the latest wave of environmental FUD in the markets. 

Institutional investment managers bought $10 million worth of ADA products for the week ending May 24, according to CoinShares. Cardano investment funds attracted more capital than any other digital asset.

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By comparison, Bitcoin funds saw an outflow of $110.9 million during the same week. Ether outflows totaled $12.6 million.

Investors poured $5.5 million into Polkadot funds and $7.1 million into multi-asset investment products, CoinShares said.

In the year-to-date, Cardano investment products have drawn $24 million in institutional assets compared with $4.13 billion for Bitcoin and $924 million for Ether.

CoinShares credited environmental blowback against Bitcoin for the sudden pivot towards proof-of-stake cryptocurrencies like Cardano. The fund manager explained:

“Cardano saw the largest inflows of US$10m, which may represent investors actively choosing proof of stake coins based on environmental considerations.”

Bitcoin’s flash crash to below $30,000 last week triggered a tidal wave of selling in the market, as Ether, Cardano and every other major altcoin made new local bottoms. As CoinShares noted, Bitcoin volumes on exchanges surged to $155 billion last week, a new all-time high. Markets appeared to be in recovery mode on Monday, though it’s still too premature to declare a bottom.

ADA was among the top-performing cryptos before the market tanked last week. The cryptocurrency made successive highs as it pierced above $2.00 en route to new highs closer to $2.40.

ADA was up 33.5% to $1.50 at the time of writing for a total market capitalization of $47.9 billion.