- Cardano saw a big jump in investor interest, with $1.1 million flowing into its investment products last week, marking a turnaround from previous outflows.
- Despite March’s dip, Cardano has attracted around $6 million since the start of the year, showing a positive trend for the cryptocurrency.
In recent weeks, Cardano (ADA) has garnered significant attention from investors, experiencing a surge in inflows totaling $1.1 million. This sudden influx marks a notable reversal from the $3.7 million outflows recorded just a week prior, according to data from CoinShares. The rise in investment reflects a growing prominence for Cardano within the cryptocurrency investment landscape, positioning it as a noteworthy contender amidst market fluctuations.
The resurgence of investor interest isn’t limited to Cardano alone. Bitcoin ETFs have also recovered, with inflows reaching $862 million last week. This broader increase in crypto investment activity has seen total inflows surpassing $13 billion since the beginning of the year. Bitcoin ETFs, in particular, absorbed the majority of these inflows, totaling $12 billion, indicating robust investor confidence in the leading cryptocurrency. This surge in investment activity highlights the growing appeal of digital assets among traditional investors.
A recovery for Bitcoin ETFs, with US$862m inflows last week pic.twitter.com/D1OWUSdGIU
— James Butterfill (@jbutterfill) April 1, 2024
Speculation Surrounds Cardano ETF
Cardano’s ability to attract investment amid a competitive market landscape underscores its growing prominence. With limited investment options tailored to Cardano, the cryptocurrency has captured the attention of investors seeking exposure to alternative assets. The prospect of a Cardano ETF remains speculative, especially given the situation with Ethereum. However, as capital flows into ADA-oriented investment products, Cardano’s position on the financial markets will likely strengthen, positioning it as a notable contender in the ongoing crypto ETF boom.
Despite the positive influx of investment, concerns linger over Cardano’s recent performance compared to other assets. ADA has exhibited sluggish performance, with losses of 3.50% and only 6.40% gains year-to-date, as reported by CNF mar. The analysis further reveals a drop in the percentage of ADA’s total supply in profit, from 80% to 75%, indicating a trend of selling activity and raising concerns about ADA’s trajectory amidst bullish market trends.
Additionally, there’s been a notable decrease in the number of wallets holding substantial amounts of ADA, signaling a shift in investor behavior. This could reflect a lack of confidence in ADA’s prospects or a desire among investors to reallocate their assets to other cryptocurrencies or investment vehicles.
Grayscale Removes Cardano from Funds
Additionally, Grayscale Investments, a prominent digital asset management firm, recently announced significant adjustments to its portfolio composition. In a press statement released on April 4, the company disclosed the removal of Cardano (ADA) from its Grayscale Digital Large Cap Fund (GDLC) and Cosmos’s ATOM token from the Grayscale Smart Contract Platform Ex-Ethereum Fund (GSCPxE).
The decision to remove Cardano stems from CoinDesk’s recent rebalancing of its industry sector indices. Grayscale clarified that the methodologies of the respective indices dictated the alterations in asset components and weightings within its funds. As per Grayscale’s statement, these adjustments are subject to change without prior notice.
Following the removal of Cardano from GDLC, the assets were liquidated, and the proceeds were reinvested in other components of the fund in accordance with their respective weightings.
Recommended for you:
Credit: Source link
%20(1)%20(1)%20(1).png)
