Crypto Funds See $360M Outflows as Solana ETFs Surge

Cryptocurrency investment products saw $360 million in outflows last week as investors reacted to Federal Reserve Chairman Jerome Powell’s cautious remarks about future rate cuts.

Despite Wednesday’s rate cut, Powell’s remark that another in December was “not a foregone conclusion,” combined with the absence of economic data due to the ongoing government shutdown, appears to have left markets uncertain, CoinShares. reported on Monday

Most of the selling pressure came from US markets, which saw $439 million in outflows, partly offset by modest flows from Germany and Switzerland. Bitcoin ETFs led the decline with $946 million in redemptions.

Even as Bitcoin funds have borne the brunt of the flows, not all assets have followed suit. Solana stood out, attracting $421 million in inflows, its second largest on record, led by demand for newly launched US exchange-traded funds (ETFs), bringing year-to-date totals to $3.3 billion.

Ethereum also saw $57.6 million in inflows, although daily activity suggested mixed sentiment among investors.

The outflows come after the crypto products are accumulated $921 million in inflows the previous week, driven by the lower than expected Consumer Price Index (CPI). data released on October 24.

Related: Retail investors ‘withdraw’ at $98.5K: 5 things to know in Bitcoin this week

New Solana staking ETF

Bitwise’s new Solana Staking ETF (BSOL) debuted last Tuesday at $222.8 million in seed assets, reporting strong institutional demand for Solana staking products.

BSOL offers investors direct exposure to Solana (SOL) with a an estimated annual return of 7%. from onchain staking rewards.

From Friday, spot Solana ETFs had logged afour straight day of inflowsadding $44.48 million.

Vincent Liu, Chief Investment Officer of Kronos Research, told Cointelegraph that the trend reflects growing interest in staking yields and ongoing “capital rotation” as traders take profits from recent Bitcoin (BTC) and ether (ETH) demonstrations.

Although the inflows of the Solana ETF have increased, at the time of writing, SOL was trading around $166, up more than 9% in the last 24 hours and around 26% in the last 30 days, according to CoinGecko. data.

Magazine: Solana vs Ethereum ETFs, Facebook’s influence on Bitwise: Hunter Horsley