Solana Investment Vehicles Attract $3 Million Inflows Amid $500 Million Crypto Outflows

Investment Products Sees Inflows

Investment products offering exposure to the smart contract platform Solana experienced inflows of $3 million over the past week, while nearly $500 million in outflows were observed across cryptocurrency investment products overall. Bitcoin and Ethereum products were leading.

Massive Outflows From Grayscale’s Funds

CoinShares’ latest Digital Asset fund Flows Weekly report indicated that cryptocurrency investment products saw $500 million in outflows, partly due to investors ditching Grayscale’s GBTC, recently converted into a spot Bitcoin ETF.

Outflows Continue for Bitcoin and Ethereum

CoinShares’ report showed total outflows of $478.9 million for Bitcoin investment products, while Ethereum investment products saw $38.8 million in outflows. Products shorting Bitcoin saw $10.6 million in inflows.

Impacts on Altcoins

Regarding altcoins, products offering exposure to Litecoin saw $200,000 in outflows, while those offering exposure to XRP and Cardano each experienced $400,000 in outflows. Solana-focused investment products were among the few seeing inflows.

Market Optimism with Bitcoin’s Growth

These movements come as Bitcoin is heading for its fifth month of consecutive gains, marking its longest run since the pandemic-driven rally boosted by stimulus checks. If Bitcoin maintains its current trajectory, it will reach its highest streak of monthly gains since the pandemic-era rally between October 2020 and March 2021, before reaching its peak of nearly $69,000 in November 2021.

Price Volatility After Spot Bitcoin ETFs’ Debut

Bitcoin plunged 21% in the 12 days following the debut of spot Bitcoin ETFs in the US this month, while GBTC faced massive outflows post-ETF conversion. However, the outflow rate has slowed down as BlackRock and Fidelity’s ETFs continue to attract new investments.