3 weeks ago
16
Despite struggling crypto prices last week, Solana saw significant inflows into its related digital asset investment products. While investors withdrew millions of dollars from crypto investment products overall, more than $7.6 million flowed into Solana-based exchange-traded products (ETPs).
Bitcoin sees $319 million in outflows
According to a report by CoinShares, the entire crypto market experienced $305 million in net outflows from crypto ETPs as Bitcoin retested prices below $58,000. Notably, Bitcoin accounted for $319 million of these outflows.
📉 Digital asset investment products saw outflows totalling US$305m. #Bitcoin and #Ethereum saw outflows of US$319m and US$5.7m respectively. Read our full report: etp.coinshares.com/knowledge/mark…
The bearish outlook saw Short bitcoin investment products record a second straight week of inflows with $4.4 million. This was the largest inflow into the short BTC funds since March when Bitcoin price tumbled from its all-time price above $73k.
Meanwhile, Ethereum had about $5.7 million exit cryptocurrency exchange-traded products amid downside pressure on Ether price. This happened as ETH trading volumes stagnated.
Per on-chain data, with weekly totals only accounted for 15% of what the market recorded during the week when spot Ethereum ETFs launched in July.
Solana sees $7.6 million in ETP inflows
While Bitcoin and Ethereum recorded outflows, Solana (SOL) seemed to defy price weakness and the trend from the top two cryptocurrencies by market cap.
CoinShares data shows SOL investment products recorded over $7.6 million in inflows over the week, outshining ETH and other top altcoins. For instance, BNB saw inflows of only $800,000, while Litecoin and Cardano each attracted $300,000.
Solana registered inflows despite SOL price dipping to lows of $133 on August 30, 2024. SOL has nonetheless tested support around $127 before rebounding to above the $130 area.
Spot Bitcoin ETFs
Among spot Bitcoin ETFs, the largest weekly inflow was to BlackRock’s iShares Bitcoin ETF (IBIT), which registered over $210 million in net inflows. The Ark 21Shares Bitcoin ETF (ARKB) meanwhile had the biggest weekly outflows with over $219 million.
Blockchain equity ETPs saw $11.1 million in net inflows, the majority at $8.8 million going into the Valkyrie Bitcoin Miners ETF.
What drove negative crypto ETP sentiment last week?
CoinShares points out that negative sentiment catalyzed the outflows from crypto ETPs over the week. Strong macro data did not help bulls, with a negative outlook widespread across various exchange-traded product providers and regions.
“We believe this was driven by stronger-than-expected economic data in the US, which has diminished the likelihood of a 50-basis point interest rate cut. We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the Fed gets closer to a pivot,” CoinShares head of research James Butterfill wrote.
The post Solana sees $7.6 million in ETP inflows despite SOL price weakness appeared first on Invezz
English (US) ·