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Cardano (ADA) Eyes Big Fund Flows Amid Turbulent Crypto Market

Mon, 05/15/2023 - 14:56
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Gamza Khanzadaev
Funds flow into Cardano (ADA) amid storm on crypto market
Cardano (ADA) Eyes Big Fund Flows Amid Turbulent Crypto Market
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CoinShares' most recent weekly report on the flow of funds into digital asset investment products reveals a consistent trend of outflows for the fourth consecutive week. These outflows amounted to $54 million, contributing to a total figure of $200 million since the beginning of the year.

Interestingly, amid the outflows, there were also inflows observed on various alternative cryptocurrencies, indicating a growing willingness among investors to explore new opportunities. Notably, Cardano (ADA) emerged as the standout performer among these alternative coins.

Billions of Cardano (ADA) Purchased as Bulls Outbid Bears

According to CoinShares, investment products focused on Cardano witnessed a remarkable influx of $500,000 over the past week. This surge in investment is particularly noteworthy as it represents the highest flow of funds into ADA in the last month, bringing the total inflow to $4 million since the start of the year.

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In contrast, Bitcoin experienced significant outflows amounting to $38 million, accounting for a substantial 80% of the total withdrawal from the market during this period. These outflows, combined with the reduction in Short Bitcoin positions, highlight the prevailing investor sentiment that has primarily revolved around BTC.

Bitcoin (BTC) to Retest $28,000 Price Level, Shows Skew's Analysis

Overall, CoinShares' report suggests a trend of investors diversifying their portfolios by venturing into alternative cryptocurrencies. While digital asset investment products, on the whole, experienced outflows, Cardano became an enticing choice for investors, attracting significant inflows. At the same time, the dominance of Bitcoin in terms of outflows indicates that investor attention has remained focused on this flagship cryptocurrency.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.