CoinShares: Institutional Focus Shifts to Ethereum Competitor Solana as Bitcoin Profits Captured
CoinShares, a prominent digital assets manager, has unveiled a notable trend among institutional investors who are increasingly showing optimism towards Solana (SOL), a robust contender to Ethereum (ETH). As these savvy investors secure profits from the dominant cryptocurrency, Bitcoin (BTC), their attention is drawn towards the potential of Solana.
In the latest edition of their Digital Asset Fund Flows Weekly Report, CoinShares analyzes the movement of funds in the digital assets realm. The report reveals that the past week witnessed digital assets experiencing outflows exceeding $100 million for the third consecutive week.
The report indicates that the momentum of profit-taking has escalated over the recent weeks, leading to these significant outflows. Bitcoin has borne the brunt of these outflows, with a total of $111 million exiting the market – the most substantial weekly outflow since March, a period marked by heightened regulatory scrutiny in the United States. Notably, the report highlights that the outflows into short positions on Bitcoin have come to a halt for the first time in 14 weeks.
Combining the outflows from Ethereum and Bitcoin, the market experienced a collective loss of $117 million in the past week. However, there was a silver lining in the form of approximately $10 million inflows into various altcoins, which helped offset the outflows from Bitcoin and Ethereum. Among these altcoins, Solana stood out, attracting the largest inflows amounting to $9.5 million. This marks the most significant weekly influx since March 2022.
While Solana gained substantial inflows, other altcoins also saw a positive trend. XRP and Litecoin (LTC) drew in inflows of $0.5 million and $0.46 million, respectively. However, Uniswap (UNI) and Cardano (ADA) experienced outflows of $0.8 million and $0.3 million, respectively.
Furthermore, the report highlights that multi-asset investment products, which encompass diversified portfolios of multiple crypto assets, also witnessed inflows of $0.3 million during the past week. CoinShares interprets these inflows as a potential indicator of improving investor sentiment towards altcoins.
In summary, CoinShares’ report underscores the evolving landscape of institutional investment strategies, as a shift in focus towards Solana emerges alongside profit-taking from Bitcoin. The dynamics of altcoin inflows and outflows provide insights into the evolving sentiment among investors within the dynamic world of digital assets.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.