Institutional investors are showing interest in Cardano
Cardano (ADA) has witnessed a significant 300% increase in exchange-traded product (ETP) inflows. The unexpected inflow of capital from institutional investors could pave the way for a potential uptrend ahead of the Chang hardfork.
Cardano fund inflows skyrocket by 300%
On July 29, CoinShares, a leading company in the cryptocurrency ETP industry, published a weekly report on the flow of funds from various digital assets. According to CoinShares, digital asset investment products saw a relatively small inflow of about $245 million in the last week.
Among the list of digital assets that recorded new inflows, bitcoin (BTC) recorded the largest increase in inflows. The pioneering cryptocurrency saw significant inflows of $519 million, reaching a monthly inflow of $3.6 billion.
Even more impressively, Cardano recorded a dramatic inflow of funds into its ETP totaling about $1.2 million. This massive inflow represents a whopping 300% increase from the previous week. In addition, Cardano's strong performance has actually propelled it to second place among all cryptocurrency ETPs.
CoinShares, publishing a chart of “Asset Flows” of Cardano and various other prominent cryptocurrencies, reports that institutional investors have invested a total of $11 million in Cardano-focused investment products. In addition, monthly Cardano inflows totaled about $2.4 million.
In its report, CoinShares also said that the launch of Ethereum spot exchange-traded funds (ETFs) was one of the largest capital inflows since December 2020. It also led to a staggering $2.2 billion in new ETF inflows, while Ethereum (ETH) trading volumes rose 542%.
In the case of Cardano, after a 300% increase in ETP inflows, the cryptocurrency's price showed a slight rebound from previous bearish trends. After rising to around $0.8 in March 2024, Cardano's price undergoes a correction phase, dipping below the $0.4 mark.
Due to the fact that there has been a slightly more positive outlook towards the cryptocurrency. Analysts such as “Sssebi” on X (formerly Twitter) concluded that Cardano was the most undervalued asset among the top 10 cryptocurrencies. The analyst said that investors should remain bullish on Cardano, predicting positive upside for the cryptocurrency.
ADA Price Analysis Update
Although Cardano's price has been steadily declining over the past few months, Cardano has steadily consolidated around the $0.4 price level, highlighting the cryptocurrency's strength and resilience in adverse market conditions. CoinMarketCap reports show that the cryptocurrency is currently trading at $0.4, reflecting a decline of 4.34% in the past 24 hours.
Analysts such as Sssebi continue to maintain a bullish outlook on the cryptocurrency, expecting future price gains during the bull cycle. According to Sssebi, Cardano is set to outperform the cryptocurrency market, fueled by its rapidly growing ecosystem of hundreds of decentralized applications (dApps).
