Altcoins
Solana dominates altcoin inflows as investors buy last week’s dip
Key points
- Cryptocurrency investment products saw inflows of $441 million, 90% of which were in Bitcoin.
- Solana has emerged as the best-performing altcoin, with $57 million in inflows since the beginning of the year.
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Cryptocurrency investment products saw inflows of $441 million last week, as investors saw recent price weakness as a buying opportunity, second asset management firm CoinShares. Selling pressure from Mt. Gox and the German government likely drove this surge in interest after three straight weeks of outflows.
Bitcoin dominated with $398 million in inflows, accounting for 90% of the total. Despite its notable dominance, CoinShares’ report notes that this is relatively low, indicating that investors have decided to diversify their investments into altcoins.
Solana emerged as the best-performing altcoin from a flows perspective, with $16 million last week and bringing its year-to-date (YTD) inflows to $57 million. Ethereum saw $10 million in inflows, but remains the only cryptocurrency-indexed exchange-traded product (ETP) with net YTD outflows.
Regionally, the United States led with US$384 million in inflows. Hong Kong, Switzerland and Canada also saw notable inflows of US$32 million, US$24 million and US$12 million, respectively. Germany was an exception, with US$23 million in outflows.
However, blockchain-based stocks continued to see outflows, with an additional $8 million last week, bringing YTD outflows to $556 million.
ETP volumes remained relatively low at $7.9 billion for the week, reflecting typical seasonal patterns. This represents a 17% lower participation rate than the total market for reputable exchanges.
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