Cardano (ADA) rose sharply last week even as interest in Bitcoin (BTC) and Ethereum (ETH) waned, highlighting the growth of proof-of-stake assets amid the latest wave of environmental FUD in the markets.
It has been reported according to CoinShares that institutional investment managers bought $10 million worth of ADA products for the week ending May 24.
However, Cardano investment funds attracted more capital than any other digital asset. By comparison, Bitcoin funds saw an outflow of $110.9 million during the same week. Ether outflows totaled $12.6 million.
CoinShares said that investors poured $5.5 million into Polkadot funds and $7.1 million into multi-asset investment products.
Is the blowback against Bitcoin a boon for Cardano? In a sign that investors are actively choosing proof of stake coins based on environmental considerations, Cardano saw an inflow of $10M in investments. Why? https://t.co/eFKbb3uYOu — Cointelegraph (@Cointelegraph) May 25, 2021
The report said that in the year-to-date, Cardano investment products have drawn $24 million in institutional assets compared with $4.13 billion for Bitcoin and $924 million for Ether. CoinShares credited environmental blowback against Bitcoin for the sudden pivot towards proof-of-stake cryptocurrencies like Cardano.
The fund manager explained:
“Cardano saw the largest inflows of US$10m, which may represent investors actively choosing proof of stake coins based on environmental considerations.”
Likewise, Bitcoin’s flash crash to below $30,000 last week triggered a tidal wave of selling in the market, as Ether, Cardano and every other major altcoin made new local bottoms.
As CoinShares noted, Bitcoin volumes on exchanges surged to $155 billion last week, a new all-time high. Markets appeared to be in recovery mode on Monday, though it’s still too premature to declare a bottom.
ADA was among the top-performing cryptos before the market tanked last week.
Thus, the cryptocurrency made successive highs as it pierced above $2.00 enroute to new highs closer to $2.40.