- Solana outflows last week amounted to $5.3 million.
- Bitcoin accounted for a large portion of the inflows amid impending approval of a spot ETF.
2024 started off on a good note, with digital asset investment inflows hitting $151 million in the first week. However, Solana (SOL) did not contribute much to the fund despite having an impressive year in 2023.
Instead, it recorded more outflows, CoinShares reports.
According to AMBCrypto’s assessment of the weekly report, the Solana leak amounted to $5.3 million. There were many reasons why sentiment towards altcoins changed. But what was noteworthy was the price of Bitcoin (BTC) and SOL.
Although the price of SOL has recovered above $100, the past week has not been good. According to data from CoinMarketCap, SOL price fell below $90 in the first week of January. This was one of the reasons why performance remained down 10.12% for 7 days.
In the case of Bitcoin, there has been a lot of optimism about the coin. As a result, the related inflow amounted to $113 million out of the total $151 million.
Source: CoinShares
AMBCrypto also found that expectations of the approval of a spot ETF in the US were a key driver of flows. So it’s no surprise that CoinShares’ head of research commented:
“Even though spot-based ETFs have not yet launched in the US, 55% of inflows came from US exchanges, with Germany and Switzerland accounting for 21% and 17% respectively.”
Additionally, reports from multiple sources indicate that approval is close to completion. This was also confirmed in a post by Gary Gensler on X on January 8th.
In the post, the SEC Chairman said: encourage Investors should be careful with cryptocurrency assets. Comments under the post indicated speculation that the anti-cryptocurrency regulator had agreed to provide approval to the applicant.
There had previously been speculation that the event would be a ‘news-selling’ event. However, details in the CoinShares report show that many participants did not share that sentiment. The report noted:
“If many people truly believed that the launch of an ETF in the US would be a “buy the rumor, sell the news” event, we would certainly have expected to see inflows into short Bitcoin ETPs of $7 million over the past nine weeks. It reached.”
Meanwhile, the sentiment surrounding Solana has changed from last week. To reach this conclusion, AMBCrypto used on-chain data from Santiment to determine Weighted Sentiment.
SOL’s Weighted Sentiment was -0.334 on January 6, according to Santiment. However, at press time, the indicator had risen into positive territory.
Source: Santiment
This resurgence confirms that positive reviews of the project have outweighed negative reviews over the past two days.
Realistic or not, the market cap of SOL in ETH is:
If these sentiments remain the same by the end of this week, fund flows associated with Solana could increase.
However, altcoins may have to contend with Ethereum (ETH). Unlike Solana, Ethereum investment products saw inflows totaling $29 million.