Cryptocurrency investment products as a whole saw outflows of $30 million over the past week, with Ethereum-focused products seeing their largest outflows in nearly two years over the same period after investors moved $61 million off of these products.
That’s according to CoinShares’ Digital Asset Fund Flows weekly report, which details cryptocurrency investment products saw their third consecutive weekly outflows over the past week, with most product providers seeing minor inflows that were offset by larger outflows from Grayscale.
Trading volumes, the firm’s report adds, rose 43% week-on-week to $6.2 billion, while remaining below the $14.2 billion weekly average seen so far this year. While Bitcoin investment products saw $10 million in weekly inflows, Ethereum-focused products saw massive outflows of $60.7 million.
Meanwhile, Ethereum rival Solana saw $1.6 million in inflows, while Litecoin saw $1.4 million and XRP $300,000, below Chainlink’s $600,000 inflows. Products offering exposure to multiple digital assets saw $17.9 million in inflows.
As report, crypto trading firm GSR has taken a long position on the smart contract platform Solana citing its “superior technology,” and suggesting its “likely just a matter of time” before Solana gets a spot exchange-traded fund (ETF) trading in the United States.
In a recently published note GSR highlighted Solana’s features including its Proof-of-History mechanism and its “ultra-cheap transaction costs” and “wide array of decentralized applications,” as well as its “bustling user and developer communities.” It touted the release of innovations like token extensions over its technology which the firm said “provides a sustainable competitive advantage.”
The firm acknowledged that Solana’s focus on speed and security may come at the expense of some decentralization, but added it believes this trade-off will become less significant as hardware costs decline.
GSR’s bullishness on Solana coincides with a political twist. The firm suggests that former President Trump’s recent support for the cryptocurrency industry, coupled with a potential softening stance from Democrats in a tight election year, could pave the way for a more favorable regulatory environment. This, in turn, could accelerate the approval of spot ETFs for cryptocurrencies beyond Bitcoin.
CoinShares’ report also details that blockchain-related equities suffered outflows of $545 million this year, a figure that represents 19% of assets under management.
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