Markets
Ethereum Products Face $61M Outflows, Solana Sees $1.6M Inflows Amid Broader Crypto Market Decline
Overall, cryptocurrency investment products saw $30 million in outflows last week, with Ethereum-focused products seeing the largest outflows in nearly two years over the same period, after investors moved $61 million out of these products.
This is second CoinShares Digital Asset Fund Flows The weekly report, which details cryptocurrency investment products, recorded its third consecutive weekly outflow over the past week, with most product providers seeing smaller inflows offset by larger outflows from Grayscale.
Trading volumes, the firm’s report adds, increased 43% on a weekly basis to $6.2 billion, although still below the $14.2 billion weekly average recorded so far this year. While Bitcoin investment products saw $10 million in weekly inflows, Ethereum-focused products saw massive outflows of $60.7 million.
Meanwhile, Ethereum rival Solana saw $1.6 million in inflows, while Litecoin saw $1.4 million and XRP $300,000, trailing Chainlink’s $600,000 in inflows. Products that offer exposure to multiple digital assets saw $17.9 million in inflows.
As reported, the cryptocurrency trading company GSR has taken a long position on the Solana smart contract platform citing its “superior technology” and suggesting it is “probably only a matter of time” before Solana gets a spot exchange-traded fund (ETF) in the United States.
In a recently published note GSR highlighted Solana’s features, including its proof-of-history mechanism and “ultra-low transaction costs” and “a wide range of decentralized applications,” as well as its “vibrant user and developer communities.” It touted the release of innovations such as token extensions on its technology that the company said “provide a sustainable competitive advantage.”
The company acknowledged that Solana’s focus on speed and security may come at the expense of some decentralization, but added that it believes this tradeoff will become less significant as hardware costs fall.
GSR’s optimism about Solana coincides with a political shift. The firm suggests that former President Trump’s recent support for the cryptocurrency sector, coupled with a potential softening of the Democrats’ stance in a tight election year, could pave the way for a more favorable regulatory environment. That, in turn, could accelerate the approval of spot crypto ETFs beyond Bitcoin.
CoinShares’ report also notes that blockchain-related stocks have seen outflows of $545 million this year, representing 19% of assets under management.
Featured Image via Plumage.