Crypto investment products observes another week of $109 million
Despite rising political tensions surrounding the Russia-Ukraine issue, institutional crypto fund manager CoinShares reported that crypto investment products saw inflows for the sixth week in a row.
Avalanche was the second best performer in the week ending February 21, according to the research, which examines weekly flows into digital asset funds. Inflows totaled $25 million.
Ethereum Outflows Record
Institutional investors invested $109 million into crypto investment products last week, according to the study. Despite recent price decrease ascribed to a number of macro challenges, including rising tensions in Eastern Europe, it was successful.
The fact that the White House prepares to issue an executive order directing US government agencies to develop a national strategy for regulating the cryptocurrency market hasn’t deterred investors.
They record inflows in both Europe and the Americas. It is the latter that received the most of the money, with inflows reaching $101 million.
Last week, bitcoin received its largest inflows since December 2021, reaching $89 million. However, inflows “remain modest,” with $221 million in the last five weeks accounting for 0.7 percent of total assets under management (AuM), according to the study.
Meanwhile, Ethereum experienced $15 million in withdrawals, with Binance ($0.5 million) and Ripple ($0.1 million) recording small outflows.
The Second-best Performer
Avalanche was the second-best performer last week, with inflows reaching $25 million.
Avalanche emerged as one of Ethereum’s key competitors among the quickly increasing Layer 1 networks. It has marketed as the fastest smart contracts platform in the blockchain industry.
Ava Labs launch Avalanche by Ava Labs in 2020 and soon gained traction in the DeFi arena.
According to the total value locked (TVL) statistic, it is home to 170 protocols and ranks fourth.
Thus according data given by DeFi Llama, Avalanche is now behind Ethereum ($117.3 billion). On the other hand, Terra ($16 billion), and Binance Smart Chain ($11.9 billion) in terms of TVL.
It’s too early to determine if this signals larger interest in the altcoin because the influx was only for one day. This is on putting Avalanche’s strong volume from last week into context.
It records inflows of $9.4 million and $1.2 million in multi-asset and Solana investment products, respectively.
A single-chain delegated Proof-of-Stake system, Solana puts scalability ahead of decentralization and security. A decentralized clock called Proof-of-History is at the heart of Solana’s scaling approach.
Meanwhile, institutional investors continued to flock to blockchain equities, with inflows totalling $26 million–across a wide range of investment instruments.