Cryptocurrency investment products failed to extend their inflow streak last week as spot prices declined.
Global crypto exchange-traded products (ETPs) recorded $812 million of outflows in the week to Friday, ending a two-week run of inflows, CoinShares reported on Monday.
Total assets under management (AUM) declined to $221 billion from a record-setting $241 billion the previous week, likely due to fading confidence over US interest rate cuts, wrote CoinShares’ head of research, James Butterfill.
The outflows came as Bitcoin dropped 3.4% from $112,000 on Sept. 22 to an intraweek low of $109,000, according to data from CoinGecko.
Solana is the standout performer
Bitcoin (BTC) and Ether (ETH) ETPs logged significant losses last week, with $719 million and $409 million of outflows, respectively.
Solana (SOL) funds emerged as the standout performer, with $291 million in inflows, likely in anticipation of forthcoming exchange-traded fund (ETF) launches in the US, Butterfill said.
Despite the failure to maintain the inflows last week, crypto ETPs managed to hold substantial cumulative inflows, including $4 billion in month-to-date inflows and $39.6 million in year-to-date, CoinShares’ Butterfill noted.
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According to the analyst, crypto funds are well-positioned to maintain momentum to potentially match last year’s record of $48.6 billion.
“Enormous” next weeks for ETFs
The outflows came amid ETF analysts expecting big developments in altcoin ETFs in the US in the coming weeks.
According to NovaDius Wealth Management president Nate Geraci, the upcoming two weeks could be “enormous” for US spot crypto ETFs, as the Securities and Exchange Commission is expected to make decisions on multiple ETF filings.
Geraci noted that Canary Capital’s Litecoin (LTC) ETF is first in line, with the SEC deadline arriving this week.
The highly anticipated decision on the Canary Litecoin ETF will be followed by rulings on several other altcoin ETFs, including XRP (XRP), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Hedera (HBAR). He added that the SEC has the discretion to approve “any or all of these whenever.”
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