Crypto Funds Shift: Bitcoin & Ethereum Bleed $1.1B While Solana Products Rake in $291M
Digital asset markets witness dramatic capital rotation as established giants stumble and altcoins surge.
The Great Migration
Institutional money makes a sharp pivot—Bitcoin and Ethereum investment products hemorrhage $1.1 billion in outflows while Solana-focused vehicles capture $291 million in fresh capital. The numbers don't lie: smart money chases momentum, leaving crypto royalty scrambling.
Solana's Surge
While legacy cryptocurrencies face investor exodus, Solana products attract nearly $300 million in weekly inflows. The blockchain's scaling capabilities and developer activity create perfect conditions for capital flight from slower-moving assets.
Market Realignment
This isn't just portfolio rebalancing—it's a fundamental shift in institutional confidence. Traditional crypto heavyweights face their toughest test yet as newer protocols demonstrate real utility beyond speculative trading.
Wall Street's fickle affection strikes again—yesterday's darling becomes today's baggage in the relentless crypto casino.
Bitcoin, Ethereum Products Bleed While Solana Shines
Crypto investment products experienced a total net outflow of $812 million over the past week, primarily driven by Bitcoin products, which incurred $719 million in weekly outflows. Ethereum followed with its investment products, losing funds worth $409.4 million.
The report attributes the outflow in BTC and ETH investment products to the lower expectations of interest rate cuts this year, following the stronger-than-anticipated macroeconomic data in the US. Notably, the GDP and durable goods figures were revised to the upside, showing resilience in the economy.
That said, cumulative month-to-date (MTD) inflows remain strong, hovering around the $4 billion mark. Similarly, the cumulative year-to-date (YTD) inflows stand at $39.6 billion, inching closer to last year’s record $48.6 billion inflows.
Notably, BlackRock’s iShares spot Bitcoin exchange-traded fund (ETF) lost $68 million in funds. Meanwhile, Grayscale Investments’ GBTC ETF saw $300 million in outflows, while Fidelity’s FBTC witnessed outflows to the tune of $738 million. The report adds:
Importantly, there was no commensurate increase in short-bitcoin investment product demand, suggesting that the negative sentiment was likely low-conviction and likely to prove temporary.
In terms of countries, the US saw outflows to the tune of $1.03 billion, while Sweden-based crypto investment products lost $13.4 million in funds. On the contrary, Swiss products gained $126 million, while Canadian investment products attracted $58.6 million in inflows.
Unlike bitcoin and Ethereum investment products, Solana investment products shone as they attracted inflows worth $291 million. Even more impressive, Solana products have pulled in $1.8 billion worth of funds on a YTD basis.
Besides the positive momentum in investment products, SOL is also seeing bullish price action as it steadily moves toward its all-time high (ATH) value of $293, recorded earlier this year in January.
Analysts say that SOL’s recent positive price action can be attributed to the rising likelihood of spot SOL ETFs getting approved in the NEAR term. A recent report remarked that SOL-based ETFs could be approved in as little as two weeks.
Will Macroeconomic Factors Benefit Cryptocurrencies?
Latest data from FedWatch gives an 68% probability of the US Federal Reserve (Fed) lowering interest rates by 50 basis points (bps) during its December 10 meeting. The rate cut is expected to benefit risk-on assets, including cryptocurrencies like BTC, ETH, and SOL.
In addition, future lower-than-expected inflation readings may further encourage the Fed to slash interest rates on an even larger scale. At press time, BTC trades at $113,628, up 3.1% in the past 24 hours.
