Recent developments show that institutional investors are pessimistic towards Bitcoin (BTC) and Ethereum (ETH), altcoins such as Solana (SOL) and XRP are seen as better alternatives. CoinShares claims the outflow of funds from digital assets around the world indicates a "price correction" is underway. Digital asset investment products recorded outflows of $1.2 billion in two weeks.
The $1.2 billion outflow from digital asset investments worldwide reflects pessimism among institutional investors over interest rate cuts by the US Fed this year. Digital asset investment products recorded outflows of $584 million in the week, based on a June 24 CoinShares report.
James Butterfill, head of research at CoinShares, said “Bitcoin was the main focus, seeing outflows of US$630 million, but recent negative sentiment has kept investors from adding to short positions. The multi-asset product saw inflows of US$98 million, indicating investors see weakness in the altcoin market as a buying opportunity.”
The bulk selling came mostly from investors in the United States and Canada, accounting for $475 million and $109 million, respectively. Then followed by Germany, Hong Kong, and Sweden. Interestingly, Switzerland and Brazil resisted massive selling and saw inflows of $39 million and $48.5 million, respectively.
Altcoins such as Solana, XRP, Litecoin and Polygon saw inflows while Bitcoin, Ethereum and Cardano remained under selling pressure. Bitcoin price fell below $61k and Ethereum below $3,300, both down 5% in the last 24 hours.
Solana recorded $2.7 million in purchases by investors in the week. The price of SOL is currently trading at $125, down 6% today amid a massive market-wide selloff. The 24-hour low and high are $123.67 and $134.22, respectively.
Meanwhile, XRP saw an investment of $0.7 million in the week. The price of XRP fell 2% in the last 24 hours, with the price currently trading at $0.475. The 24-hour low and high are $0.469 and $0.485, respectively. In addition, trading volume increased by 165% in the last 24 hours.