Since Bitcoin’s all-time high, the crypto market has lost more than $1 trillion in value, demonstrating the sector’s tendency for wild price swings. Bitcoin’s price was trying to recover back up after a tough week, hovering at $28,000-30,000 at the last check on Tuesday morning.
Some cryptocurrency investors are seeking opportunities in Cardano (ADA) and Polkadot (DOT) amid a significant drop in Bitcoin and other popular tokens like Ethereum and Solana.
Furthermore, the planned Vasil hard fork, which is set to launch in June, might act as a catalyst, which is an upgrade that will improve Cardano, ADAs – smart contract capabilities.
Institutional investors are showing interest in Cardano and Polkadot, according to a renowned digital asset manager, while substantially de-risking Bitcoin. Last week, $141 million was taken out of digital asset investment products. The continuous volatility has caused investors to be fickle, with some seeing this as an opportunity while the overall sentiment is gloomy.
According to CoinShares’ latest Digital Asset Fund Flows Weekly report, BTC witnessed $154 million in outflows last week, leading to a $141 million outflow total in the digital asset market.
Despite last week’s massive Bitcoin withdrawals, BTC has a positive year-to-date flow of $307 million. Year-to-date flows in Ethereum (ETH) products have been negative $239 million, with an extra $300,000 in outflows last week.
According to CoinShares, institutional investors put $1 million each into digital asset investment packages centered on Polkadot and Cardano, as well as $700,000, $500,000, and $100,000 into XRP, Solana (SOL), and Litecoin (LTC) products.
Last week, investors seeking diversification took refuge in multi-asset digital investment instruments, which invest in different crypto currencies.
“[Multi-asset] investment products have seen only two weeks of outflows this year, much lower relative to its peers. We believe investors see multi-asset investment products as safer relative to single line investment products during volatile periods.”