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Bitcoin And Solana Lead Institutional Inflows: CoinShares

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  • November 21, 2023

In the latest weekly report “Digital Asset Fund Flows” from CoinShares, Bitcoin and Solana are emerging as leaders in institutional inflows, indicating sustained interest from sophisticated investors in the cryptocurrency market.

James Butterfill, head of research at CoinShares, elaborated on the trend: “Digital asset investment products saw inflows totaling $176 million last week, marking an 8-week streak of consecutive inflows,” highlighting the sustained interest in exchange-traded products (ETPs) related to cryptocurrencies. Butterfill notes the significance of these inflows: “The last eight weeks of inflows represent 3.4% of total assets under management.”

Total crypto crypto asset flows
Total weekly crypto crypto asset flows | Source: X CoinShares

Bitcoin has seen the bulk of these inflows. “This continued positive sentiment is likely related to the anticipated approval of a spot-based Bitcoin ETF in the US,” Butterfill suggests, pointing to the possible market-moving reason.

Regarding ETPs, Butterfill reports a notable shift in market dynamics: “ETP share of total crypto volumes is rising, averaging 11% compared to the long-term historical average of 3.4%, and well above the averages seen in the 2020/21 bull market.” This reflects a growing integration of cryptocurrency investment products in the broader market investment vehicles.

Bitcoin And Solana Take The Lead

According to the report, Bitcoin saw the highest inflows with $154.7 million for the week, contributing to a monthly total of $624.8 million. This significant uptick propels its year-to-date (YTD) inflows to $1,238 million, underscoring a strong institutional endorsement of the leading cryptocurrency amidst a volatile market. The asset under management (AUM) for Bitcoin stands at $30,782 million, reaffirming its dominance in the market.

Solana, on the other hand, has seen the second largest inflows of $13.6 million for the week, with a month-to-date (MTD) total of $36.7 million and a YTD of $135 million. Although smaller in comparison to Bitcoin, these figures highlight Solana’s growing presence and potential in the institutional space.

As Bitcoinist reported, Solana has received a lot of attention, in part due to its strong price performance but also rumors that SOL could be the next cryptocurrency for which BlackRock files an ETF application in the US.

Other cryptocurrencies showed mixed results. Ethereum, despite a modest weekly inflow of $3.3 million, has experienced a YTD outflow of $55 million. Assets such as Litecoin (+$0.4 million), XRP (+$0.5 million) and Cardano (+$0.8 million) showed positive inflows for the week, albeit on a much smaller scale.

Crypto crypto asset flows
Flows by asset | Source: X CoinShares

On the flip side, ProShares ETFs/USA faced significant outflows, with a weekly exodus of $28.9 million. In contrast, the 21Shares ETPs (+$29 million) and the Purpose Investments Inc. ETF in Canada (+$34.8 million) saw the largest inflows.

Looking at the flows by country, Canada led the way with an impressive $97.7 million in weekly inflows, followed by Germany at $63.3 million and Switzerland at $35.4 million. In contrast, the United States saw outflows amounting to $19.2 million for the week, suggesting a geographic divergence in investment sentiments.

The data provided by CoinShares serves as a key indicator of institutional behavior and sentiment in the Bitcoin and crypto space, offering valuable insights into market trends and potential future movements. Remarkably, once again Solana seems to be the top choice among altcoins.

At press time, Solana traded at $60.26. On a bullish note, SOL closed the last week above the 0.382 Fibonacci retracement level.

Solana price
SOL closed above the 0.382 Fib, 1-week chart | Source: SOLUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

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