Institutional Investors Are Pouring Capital Into Bitcoin, Ethereum, Solana and Two Additional Altcoins: CoinShares

Digital asset manager CoinShares is detailing a shift in the way institutions are allocating capital to Bitcoin and the altcoin markets.

According the firm’s latest report, a tidal wave of inflows triggered by the launch of the first Bitcoin (BTC) futures exchange-traded fund (ETF) in the US has evened out.


The asset manager says the crypto king saw roughly $268,000,000 in new inflows, compared to $1,450,000,000 the week before.

At the same time, CoinShares reports an increase in inflows to smart contract platforms Ethereum (ETH) and Solana (SOL).

After three consecutive weeks of outflows, Ethereum broke the streak with $16,600,000 in inflows.

Solana is also on the rise, recording more than $14,700,000 in inflows compared to $8,000,000 last week.

Polkadot (DOT) burst onto the scene, recording $6,200,000 in inflows compared to $400,000 the week before. Cardano (ADA) remained steady at $5,000,000 compared to a previous total of $5,300,000.

Source: Bloomberg, CoinShares, data available as of October 29, 2021

As institutions target specific altcoins, they are simultaneously pulling money away from multi-asset investment products, according to CoinShares.

“Multi-asset investment products saw outflows totaling a record US$23m, in what is now a 3-week run of outflows. We believe investors are currently preferring single-line exposure and are becoming more discerning over their altcoin exposure.”

You can check out the full CoinShares report here.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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DeFi Factors Every Potential Investor Should Consider

As decentralized finance (DeFi) continues to make headlines, attract capital, and grow rapidly, two truths are developing in parallel; numerous opportunities exist alongside significant risks that can come from this still emerging sector of the cryptoasset space.

For the purposes of this discussion DeFi can be defined as the process by which borrowing, lending, and other financing activities are completed by blockchain and crypto native organizations. In other words, blockchain and crypto firms are seeking to replicate products and services that have traditionally been connected to banks and other financial institutions. Implications of this, especially given the tremendous growth in terms of both investment and investor attention, are far-ranging; one can simply review recent legal and enforcement actions around this space for evidence of this fact.

Legal issues aside, of which there certainly are many, investor appetite for the returns and yields generated by these organizations has been strong. Billions of dollars have been allocated to projects in this space, and hardly a week (or even a day) goes by without a multi-million fundraising transaction being completed. As with any red-hot space, there are going to be successes and failures, but the trend toward decentralized financial services is well underway. As always, with an area that is so multi-faceted and fast moving, every project will need to be assessed on an individual basis.

That said, there are several considerations that potential investors should always keep in mind when considering DeFi projects, investing in said projects, or utilizing their products and services.

What specific DeFi it is. The term decentralized finance is quickly becoming similar to the term cryptocurrency in the following manner – it is an umbrella that term that can be tossed around quite a lot, but can mean multiple different things. Prior to any other research or investment actions, a potential investor should understand what exactly are the products and/or services being offered?


Decentralized exchanges, yield farming, staking, borrowing and lending crypto, setting up a decentralized autonomous organization (DAO), and even some stablecoins can all be classified as DeFi activities. Given the sheer scope and variety of DeFi possibilities it is extremely important that any potential investors understand 1) what exactly is being offered, 2) how this product or service is being managed, and 3) what marketplace exists for this specific application.

Tax implications are going to be different. Crypto taxes are already a complicated and fast moving, with tracking, compiling, reporting, and paying the correct taxes a process that can easily consume large amounts of investor time. DeFi, unfortunately, can further complicate this conversation because depending on the specific (that word again) DeFi application in question the tax treatment can vary.

A brief example of this is as follows. For traditional DeFi lending and borrowing platforms, the interest and other income generated from these activities is treated and taxes as ordinary income. If an investor lends ether (ETH) and earns ether (ETH) these earnings will most likely be taxed at the ordinary income rate for that investor. If, however, the DeFi platform has developed and is issuing native tokens – known as liquidity pool tokens (LPTs), this income might end up being treated as capital gains. This treatment is due to the fact that the process of adding/removing liquidity to these platforms can be structured as a trade or token swap. Upon exiting of the position, and converting the LPTs back into the original crypto assets, any accumulated gain can be documented and treated as a capital gain.

As always, be sure to conduct due diligence on the platform itself and work with a tax professional familiar with the platform and the specifics of the proposed investment plan.

Reporting is still developing. One common issue that exists across the blockchain and crypto sector is that – despite significant advances in some areas – auditing and confirming the results of operations is still a work in progress. Even for well established organizations, including crypto-native firms and organizations that are integrating crypto into operations, generating consistent and comparable audited financials can be an uphill battle.

DeFi can compound this since, by the nature of some of the specific applications, there is no singular point of contact or control to audit. Conversely, one common complaint against purportedly decentralized finance applications is the centralized nature of how some of these organizations operate. For example, with firms like Coinbase gradually building out DeFi offerings, the question should be asked – how can a centralized corporation also offer DeFi products?

In any event, obtaining consistent and comparable data is still a work in progress, but should be a question asked prior to any investment decisions being completed.

DeFi is an absolutely red-hot aspect of the crypto space, and continues to develop in innovative ways on an almost daily basis. This innovation has been rewarded by financial markets in the form of increased attention and investment, and this sector continues to attract new investors. Similar to any new asset class, however, and similar to cryptocurrencies in prior years, there are several commonalities and core trends that exist no matter which specific application is selected. Investors, large and small, have the resources and capability to make well-informed decisions, and understanding these integral items can make substantial differences in investment results moving forward.


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Polkadot Price Hits New All-Time High, Rises Above $50 for First Time

The price of Polkadot’s native coin, DOT, has risen over 16% in the last 24 hours to reach above the $50 mark. In doing so, it registered an all-time high of $50.87, beating its previous record of $49.35, set in May.

It’s been a good month for Polkadot—not just in terms of coin price but for network functionality as well. 

In October, Parity Technologies, which has engineered the network, announced that “parachains” would soon come to the network. Parachains are essentially full blockchains that are incorporated into the Polkadot network for security and validation of transactions. Polkadot aims to be a layer-zero protocol, or a kind of blockchain for blockchains, thereby making networks interoperable.

A recently passed measure by Polkadot’s council means that developers can start registering parachains on November 5, provided the community affirms the council’s decision. To bid on auction slots and create them, developers need DOT. Holders also use DOT as a governance token to vote on such measures. (They’re also voting with DOT on Polkadot’s branding.)

After the October 13 announcement that parachains were on the way, demand for DOT increased, as both the price and trading volume extended northward. However, from that point through yesterday, the asset had stayed mostly within the $40 and $45 range.  

Parachains have been available on the Kusama network—something of a functioning testament for Polkadot—since May. That was the same month KSM set a record price of $621.71. It, too, is up for the day, by 9.5%.


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Polkadot (DOT) Soars 15% to New All-time High In Anticipation for Parachain Auctions

Heterogeneous multichain blockchain network Polkadot revealed the successful passage of a proposal to enable registration and crowd loans for developers. The network’s native token – DOT – is recording a new all-time high surpassing the $50 mark in response to the news.

Polkadot Council Approves Proposal

The Polkadot team announced the news via the official Twitter handle on Monday (November 1, 2021). According to details shared on the Polkassembly platform, a network upgrade proposal that would allow developers to register parachains and seek crowdloan funding for projects successfully passed the Polkadot Council.

The latest development comes less than a month after Polkadot announced that its parachains are ready to launch, with November 11, 2021, set as the date for the take-off. Additionally, the first batch of the parachain auctions will last for five weeks, with one auction per week. There would be a total of 11 auctions released in two batches.

Meanwhile, parachains were already being deployed on Polkadot’s canary network, Kusama, beginning in June, with Karura winning the first-ever parachain auction on the network. Since then, ten other parachains have been auctioned on Kusama.

Cryptocurrency exchange giant Binance also announced that the platform would support the Polkadot Parachain Slot Auction scheduled for November. With the Kusama parachain deployments already successful, the Polkadot blockchain network is looking to connect to the first-ever project.


DOT Records New ATH

While developers initially used KSM to secure slots for their projects on the Kusama network, the favorable vote from the Polkadot council will soon see developers use DOT.

The price of the DOT token reacted positively to the announcement, rising 15% and printing a new ATH at $50.87, surpassing May’s previous ATH at $49.35. At the time of writing DOT is trading at $50.15, according to CoinGecko.

Meanwhile, the proposal needs to pass through a final stage, which is an approval from a public referendum. If the motion passes, “parachain teams will be able to register their parachain and open their crowdloan on Nov. 4, 2021.

DOT/USD, 1-year chart by CoinGecko

The news marks another milestone in the DotSama ecosystem development. Dotsama, which is a combination of the Polkadot (DOT) and Kusama (KSM), enables cross-compatibility between both networks.

Back in September, Polkadot website wallet Talisman raised $2.3 million from investors such as Advanced Blockchain AG, Hypersphere Ventures, Koji Capital, along with several anonymous Flex Dapps investors. Talisman will use the funds to release an early version of the DotSama wallet by November 22.


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Ethereum Name Service Is Launching a Governance Token

Key Takeaways

  • The Ethereum Name Service has announced that it will create governance tokens for its members.
  • These tokens will be used with its new DAO, which will have members vote on its treasury and other matters.
  • Governance tokens will not have any market value; ENS names themselves are what carry value for users.

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The Ethereum Name Service (ENS) has announced that it will launch a governance token and accept delegate applications.

Ethereum Name Service Will Form a DAO

Director of operations Brantly Millegan posted a call for applications today describing the project’s need for a DAO and delegates.

Though he says that the project largely operates itself, there are “a few things that require some human discretion.” There is a need for real people to manage access to funds in the project’s treasury, along with other requirements that will emerge over time.

The governance token will be used to vote on those decisions—either by delegating governance tokens to oneself for voting rights, or by delegating tokens to more active project members.

Applications have already begun. The token claim process will be opened one week from today, on Monday, Nov. 8.

Names Still Carry Main Value

It does not appear that the governance token will have any market value. Rather, it is the project’s various ENS names that carry value, and which are bought and sold by regular users.

The Ethereum Name Service allows users to tie a human-readable name to their hexadecimal Ethereum address.

Currently, there are 402,000 ENS names, making ENS the largest blockchain name standard. The standard has seen support from big names like Coinbase and even Budweiser.

In 2019, the project turned those names into NFTs, allowing users to trade them on OpenSea and other marketplaces. Those tokens traded 1,617 ETH ($6.9 million) in volume over the past 90 days.

Disclaimer: At the time of writing this author held less than $100 of Bitcoin, Ethereum, and altcoins.

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Bitcoin To Challenge Gold as an Asset and Have Big Q4 Rally, According to On-Chain Analyst Willy Woo

Popular on-chain analyst Willy Woo sees Bitcoin (BTC) as an emerging challenger of gold and expects the leading crypto to ignite a strong uptrend at the tail end of this year.

In a new interview, Woo notes that Bitcoin is only a few more multiples away from matching gold’s financial cap of about $4 trillion.


“So that’s only $4 trillion dollars. Bitcoin’s comfortably above $1 trillion, so it’s only a 4x from here to essentially challenge gold as a financial instrument. Like all the gold stored in bank vaults to hedge inflation war, that sort of stuff is only $4 trillion worth of asset base.”

The analyst says he’s keeping a close eye on the behavior of long-term holders, which he says dictates Bitcoin’s price rallies. 

22:40 “Once they’ve had their fill of being at peak level of holding the supply, the price rallies, and as it rallies, then they start to sell down. Effectively, what happened was the rally at the start of this year up to $64,000… the previous guys that we’re long-term holders sold out, and we brought in a whole bunch of new guys that bought that rally, and they are now aging to five months. I mean they are our long-term holders now…

We’ve just reloaded. The shotgun is just reloaded with new ammo. These guys are at peak, and we’re ready for another run.”

Due to the accumulation of long-term holders, Woo says he’s confident to see Bitcoin rally in Q4 of this year and maintain strength at least until the first quarter of 2022.

“No matter what happens around this choppy next few weeks, we know with very high certainty that we’re going to get a good rally off the tail-end of this year. The fourth-quarter is going to be great and generally with the time signatures of these things, it’s going to run into the first quarter.

We’ll just have to see how it runs into the second quarter of next year. Maybe it goes even deeper, but it’s still really early. They’ve just reached peak levels and they’re now consolidating at their upper ceiling, those long-term holders.

I have no qualms of saying that this is what I think is going to happen, and I don’t think it’s a risky call. I think it’s pretty set in stone looking on-chain.”

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Forget Dogecoin: SHIB, ELON and SAMO Were the Leading Meme Coins in ‘Uptober’

Bitcoin did well last month in a period dubbed “Uptober” by crypto enthusiasts. 

But its modest gains of 40% were nothing compared to the weird world of meme coins, where cryptocurrencies unheard of just months ago experienced gains of upwards of 3,900%. 

Meme coins—cryptos based on internet memes, current events, online communities and influencers—have become a hot craze. And they are making lucky investors who made well-timed bets very rich. 

So which ones performed best in October? 

The best performing meme coins were largely unheard of. There are so many popping up each day it can be hard to keep track of them all (Ever heard of the WOOF token, one of the many Solana-based “dog coins” that have sprung up recently? Well, if you had last month, you’d be a whole lot richer now—it’s up 20,000%.)

Trading volume for most of these meme coins that are generating 1000x returns is still relatively small, so we’ll stick to the ones that traders are actually moving in large numbers.

Shiba Inu: 804% increase

First up, we have Shiba Inu, which despite getting a lot of attention, did modestly compared to other meme coins. Shiba Inu—or SHIB—is a meme coin that runs on the Ethereum network. It was created to poke fun at Dogecoin, previously the biggest meme coin by market cap and Elon Musk’s favorite cryptocurrency. 

And last month its value ballooned by 804%: up from $0.00000723 on October 1 to $0.00006536 by the end of the month, according to CoinGecko stats. SHIB, which as of September is now trading on leading U.S. crypto exchange Coinbase, has a 24-hour trading volume that stands at over $8 billion. 

Samoyedcoin: 2,388%

Samoyedcoin, which trades under SAMO, is a meme coin inspired by Dogecoin, crypto exchange FTX’s CEO Sam Bankman-Fried, and Anatoly Yakovenko, the founder of Solana.

SAMO runs on Solana, a popular blockchain alternative to Ethereum which itself has experienced monster gains. And just like SHIB, SAMO claims to be fun and community-owned—calling itself the “most adorable dog on any blockchain.”

From the start of “Uptober” it was priced at $0.00557457 and closed the month at $0.138738—a 2,388% increase. Its 24-hour trading volume is $35.9 million. 

Dogelon Mars: 3,984%

But the “Uptober” winner was Dogelon Mars, or ELON, which soared by nearly 4,000% last month. The Dogecoin spin-off, which also runs on Ethereum’s network, has made headlines because it is named after Tesla CEO Elon Musk—who famously pumps meme coins’ prices on Twitter (although he hasn’t spoken about this crypto at all.)

Within the last 24 hours, more than $251 million-worth of ELON has been traded.

Like the other meme coins on this list, it doesn’t have much utility other than a bit of fun. Its creators donated 50% of the entire token supply to Ethereum co-founder Vitalik Buterin, who later cashed them out and gave them to charity. 

Meme coins and tokens may look tempting with such seemingly easy returns, but such cryptocurrencies are extremely volatile, and investments don’t always have a happy ending. In fact, some “get rich quick” meme coins are outright scams. Case in point: Squid Game token investors just today lost a collective $2 million when the developer of the cryptocurrency closed up shop and ran off with the cash.


The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.


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Bitcoin (BTC) $ 26,587.12 0.03%
Ethereum (ETH) $ 1,592.90 0.15%
Litecoin (LTC) $ 65.07 1.17%
Bitcoin Cash (BCH) $ 208.03 0.05%