Investor interest in altcoins like Solana and Polkadot has surged, leading to a slowdown in outflows from Grayscale.
Inflows into the Newborn Nine ETFs declined by over 50% in the past week to $126 million, as per CoinShares' weekly report. This reduction in inflows contributed to the third consecutive week of outflows totaling $435 million, the largest since March, for major crypto-related investment products.
Grayscale Leads Despite Decelerating Outflows
Grayscale's GBTC saw the most significant outflows, with $440 million leaving the product last week. However, this marks GBTC's lowest weekly outflow in nine weeks, suggesting a deceleration in outflows. Yet, year-to-date outflows from GBTC have exceeded $17 billion.
Crypto ETP Flows. (Source: CoinShares)
James Butterfill, CoinShares' head of research, noted a slowdown in both Grayscale's outflows and inflows from new issuers. Last week, inflows from new issuers amounted to only $126 million, compared to $254 million the previous week.
Altcoins Draw Interest
Investment products linked to altcoins like Solana, XRP, Cardano, Polkadot, and Chainlink witnessed inflows last week, totaling over $25 million. However, Ethereum continued its outflow trend, with an additional $38.4 million leaving the platform, totaling $123.8 million for the month and a negative $50 million year-to-date flow.
Crypto Asset Flows. (Source: CoinShares)
Market Sentiments and Bitcoin Shorting
The bearish market sentiments attracted bears, who added $1.3 million to short Bitcoin investment products. Last week, major ETF issuers such as BlackRock and Fidelity recorded several days of zero flows, suggesting a waning investor interest in the asset class.
In summary, while altcoins witness increased investor interest, Grayscale experiences a slowdown in outflows. However, Ethereum continues its outflow trend, reflecting ongoing market uncertainties.