Investment products in digital assets have seen their highest inflows since July, totaling $78 million in the past week, according to a new report by CoinShares published on Monday. This surge in inflows has been driven by investments in Bitcoin and Solana, leading to a second consecutive week of gains for cryptocurrency funds.
Interestingly, Solana emerged as the top performer among altcoins, attracting $24 million in inflows last week – the highest since March 2022. Solana has been gaining momentum in recent weeks as investors seek greater potential for appreciation in alternative cryptocurrencies.
Solana has particularly benefited from institutional influx and has been continuously breaking records throughout the year.
Bitcoin has also benefitted from the recent inflows, attracting $43 million. However, some traders have taken the recent price increase as an opportunity to add short positions, with short-selling products for Bitcoin receiving $1.2 million in new investments.
The trading volumes of exchange-traded products (ETPs) for crypto assets have increased by 37%, reaching $1.13 billion for the week.
In terms of the launch of six new Ethereum futures-based ETFs in the US last week, it represented a significant test for investor demand. However, these new ETFs only raised around $10 million in their first week, indicating a restrained appetite for risk.
James Butterfill, Head of Research at CoinShares, noted, “The new ETFs attracted only about $10 million in the first week, highlighting a moderate appetite, especially compared to Bitcoin futures-based ETFs, which received $1 billion in the first week.”
There continues to be regional divergence in sentiment, with Europe accounting for 90% of the total inflows in the past week. In comparison, inflows from the US and Canada remain moderate.
These numbers suggest that institutional investors are increasingly interested in Solana and Bitcoin, with Europe leading the way in terms of adoption. The recent wave of investment may indicate a growing confidence in the appreciation potential of these cryptocurrencies in the coming months. It will be interesting to closely monitor how these trends evolve in global cryptocurrency markets.