Altcoin Avalanche: Ethereum and Cardano Ride $1.1B Wave of Institutional Investment

• CoinShares’ recent report reveals a significant $1.1 billion influx into cryptocurrencies following the SEC’s approval of Bitcoin ETFs.

• Bitcoin captures the majority of these inflows, with Ethereum and Cardano also experiencing notable gains in investor interest.

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Digital assets manager CoinShares reports a staggering $1.1 billion influx into crypto investment products within a month of the U.S. Securities and Exchange Commission (SEC) greenlighting spot Bitcoin (BTC) exchange-traded funds (ETFs). This surge, outlined in CoinShares’ latest Digital Asset Fund Flows report, marks a significant milestone for the cryptocurrency market. The report underscores a relentless momentum in institutional adoption, with over a billion dollars pouring into crypto investment products last week alone.

CoinShares highlights that the lion’s share of these inflows gravitated towards Bitcoin (BTC) ETFs, with nearly $3 billion flooding over the past month. This trend underscores the market’s growing confidence in Bitcoin’s potential as a lucrative investment vehicle. Moreover, Bitcoin’s meteoric price surge has catalyzed positive sentiment around other prominent cryptocurrencies, notably Ethereum (ETH) and Cardano (ADA).

While the United States continues to lead in Bitcoin ETF investments, other regions have also shown noteworthy activity. Switzerland, for instance, witnessed inflows of US$35 million last week, reflecting a broader global interest in digital assets. Despite minor outflows from Canada and Germany, the overall trend points towards a cooling off outflows from other regions.

Regional Focus and Market Dynamics

Regionally, the spotlight remains firmly fixed on the newly introduced spot-based Bitcoin ETFs in the United States. These ETFs have witnessed a remarkable $2.8 billion inflows since their launch on January 11th. While outflows from existing incumbents have tapered off, potential sales, such as the Genesis holdings of $1.6 billion, could trigger further market movements in the near term.

Beyond Bitcoin, altcoins like Ethereum and Cardano have also experienced positive sentiment and inflows. Ethereum attracted US$16 million in investments, while Cardano saw US$6 million inflows, buoyed by the overall market appreciation. Additionally, minor inflows were observed in altcoins like Avalanche, Polygon, and Tron, highlighting a diversified interest among investors.

Avalanche (AVAX) Highlights

Avalanche (AVAX) stands out with its recent performance in the realm of altcoins. Despite a temporary drop in active addresses, AVAX showcased promising metrics, including a notable increase in subnets and validators. The blockchain processed over 7.6 million transactions last week, indicating robust network activity. Furthermore, Avalanche’s performance in the decentralized finance (DeFi) sector witnessed a positive trajectory, evidenced by an uptick in total value locked (TVL) within its ecosystem.

Following positive developments, AVAX experienced a bullish surge in its price, rallying upwards amid increased trading volume. At the time of writing, AVAX was trading at $39.93, reflecting an impressive 3% surge in the last 24 hours. The token’s market capitalization exceeded $14.7 billion, solidifying its position as the ninth-largest cryptocurrency by market capitalization.

Technical indicators suggest a bullish outlook for AVAX in the short term, with the MACD signaling bullish control over the market. The Chaikin Money Flow (CMF) also indicates a sustained uptrend, further bolstering investor confidence. However, caution is warranted as the Relative Strength Index (RSI) approaches the overbought zone, potentially triggering profit-taking and temporary price corrections in the days ahead.

Institutional interest in cryptocurrencies continues to soar, with significant inflows observed across various digital assets, particularly Bitcoin ETFs. Amidst market dynamics and regulatory developments, altcoins like Avalanche (AVAX) showcase resilience and potential for growth, attracting institutional and retail investors’ attention.