Altcoins are becoming increasingly attractive to institutional investors. Among crypto investment products, Solana is seeing the largest influx of capital.
The upward trend is causing the total market capitalization of all crypto assets to rise by 0.5 percent in a 24-hour comparison to 2.2 trillion US dollars. However, only the altcoins are able to benefit from this, with the bandwagon Bitcoin buckling 0.5 percent after yesterday’s ride above the 50,000 mark, sliding to $49,779 at press time. Among the remaining top 10 coins, Solana (SOL) posts the biggest gain of 5.6 percent, while Cardano (ADA) has formed a new record high of US$2.95 in the morning hours.
Bitcoin futures are rallying
BTC price action over the past few days has once again attracted more investors to the futures markets. As on-chain data platform Glassnode writes, open interest – the amount of all open positions for both futures and options “has reached new local highs.”
After falling precipitously from the $27.4 billion all-time high during the May selloff, open interest in bitcoin futures markets is up $6 billion (+56 percent) from the lows of the recent consolidation. This week in particular saw $1 billion in futures contracts open as traders begin to use more leverage.
Bitcoin options, which unlike futures do not require buyers to commit, also saw open interest rise by over $4.1 billion to a “multi-month high,” the Swiss analytics platform says.
The current level of $8.0 billion in open contracts is similar to levels seen during the May sell-off and the January-February 2021 sell-off. It should be noted that prices were lower on both of those occasions, hovering around $30,000 to $40,000.
Solana on the menu of institutional investors
But it is not only in the futures markets that trading is risingdemand is also growing for crypto investment products. Assets under management (AUM) across all crypto investment products are at their highest level since May at $57.3 billion, with net inflows of $21 million for the first time in six weeks.
At the same time, the focus of institutional investors currently seems to be shifting from bitcoin to altcoins. As asset manager Coinshares calculates, Bitcoin investment products from providers such as Grayscale, Coinshares, or 3iQ have recorded a withdrawal of 2.8 million US dollars. In contrast, Solana posted the largest inflow last week with $7.1 million. Cardano with 6.4 and Ethereum with inflows in the amount of 3.2 million US dollars place themselves behind.