Solana and Bitcoin led the largest week of inflows into digital investment products

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Digital asset investment products are experiencing a notable boom, with asset managers such as CoinShares, Grayscale, 21Shares, Bitwise and ProShares recording inflows for the second consecutive week. This trend has led to the biggest week of inflows since July, with an impressive total of $78 million in investment. The undisputed star in this wave of inflows has been Solana, which has reached its highest investment level since March 2022, totaling $24 million, according to the latest CoinShares report. This article will delve into the factors that are driving this bullish trend and analyze the performance of Solana and Bitcoin in the digital investment market.

Solana: The outstanding choice in investment

Solana, the altcoin that has been gaining ground in the cryptocurrency world, has proven to be an attractive pick for investors. According to CoinShares head of research James Butterfill, Solana “continues to establish itself as the altcoin of choice.” This success has been reinforced by the recent launch of ether futures ETF products. Solana’s investment funds have seen inflows in 28 weeks throughout this year, with just four weeks of outflows in 2023.

Bitcoin: Undisputed Leader in Total Inflows

Although Solana has shined, Bitcoin remains the undisputed leader in terms of total inflows, totaling $43 million. However, some investors have chosen to capitalize on Bitcoin’s recent price strength by adding positions in short products, resulting in inflows of $1.2 million over the same period.

Regional division and prospects

The regional divide in digital investment inflows continues, with Europe surpassing the United States by a wide margin last week, accounting for 90% of total inflows. The United States and Canada, in contrast, accounted for just $9 million of inflows, indicating a significant divergence in investment sentiment.

Rising trading volumes and Bitcoin

In addition to record inflows, trading volumes for exchange-traded products saw an impressive 37% increase, reaching $1.13 billion for the week. Likewise, Bitcoin volume on trusted exchanges saw a 16% increase.

Weekly crypto asset flows.  Image: CoinShares.
Weekly cryptoasset flow/inflow. Source: CoinShares.

Low interest in ether futures ETFs

Despite the success of Solana and Bitcoin, ether futures ETFs launched last week in the United States only managed to attract just under $10 million. James Butterfill attributes this “low interest” to the current state of the digital asset market and notes that it is not appropriate to compare it to the Bitcoin futures ETF launches in October 2021, when interest was much higher for the asset class in general.

To end…

Digital asset investment products are experiencing an exceptional week in terms of inflows, led by Solana and Bitcoin. While Bitcoin remains the juggernaut in terms of total investment, Solana is proving to be an increasingly popular choice among investors. As the cryptocurrency market continues to evolve, it will be interesting to watch how these trends develop in the future.