While the crypto investment sector has seen significant outflows in recent weeks, the reverse is now the case, with combined inflows reaching $441 million in the past week alone. This follows three consecutive weeks of increasing net outflows concerns about investor confidence.
If reported According to James Butterfill, head of research at CoinShares, the inflows recorded over the past week, despite recent market conditions, suggest that many likely viewed the recent declines as a “buying opportunity“for investment rather than a signal for withdrawal.
Details of the crypto fund flows
Bitcoin purchases saw inflows from a wide range this week, with Ethereum and other altcoins, such as Solana, seeing significant interest. Bitcoin still leads the pack with $384 million; however, this is a step away from its usual near-total dominance.
CoinShares’ report found that Solana performed particularly well, attracting $16 million in inflows, “bringing year-to-date (YTD) inflows to $57 million, making it the best-performing altcoin from a flows perspective,” according to James Butterfill.
Ethereum also saw a favorable adjustment with $10 million inflows, but it is the only major crypto asset that is still seeing net outflows so far this year.
Meanwhile, major investment firms like Ark Invest, Fidelity and BlackRock have all noted similar trends in inflows. In the US, Bitcoin raised $384 million from local funds, marking a particularly strong market.
Not every region reflected this optimism; German funds experienced net outflows of $23 million, likely influenced by recent asset sales by the German governmentaccording to Butterfill.
Market Performance: BTC, ETH, and SOL Show Signs of Stabilization
The broader market is still relatively bearish, however, with several major cryptocurrency assets falling sharply last week. Bitcoin fell to a low of $53,000 on Friday for the first time since February. Nevertheless, over the past 24 hours BitcoinEthereum and Solana have recovered slightly.
Bitcoin saw a slight increase of 0.5% to reclaim the $57k threshold, while Ethereum gained 2.2% to also return to the crucial $3k mark. Solana closely followed these major crypto assets, seeing a 2.4% increase to trade at $140.86 at the time of writing.
The $16 million investment in Solana-based products comes as VanEck, one of the world’s largest asset managers and issuers of Bitcoin exchange-traded funds (ETFs), plans to launch a Solana-based ETF.
VanEck recently filed with the U.S. Securities and Exchange Commission (SEC) for the first-ever Spot Solana ETF, marking a pivotal moment for the cryptocurrency.
Main image created with DALL-E, chart from TradingView