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Cryptocurrency Products Report $21 Million In Inflows, with Solana Taking the Lead in the Altcoin Revival
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Cryptocurrency Products Report $21 Million In Inflows, with Solana Taking the Lead in the Altcoin Revival

Oct 4, 2023

Crypto investment products see inflows for the first time in 6 weeks, reversing a trend of outflows. This is a positive sign for the cryptocurrency market, which has been in a bear market for most of the year. The report by CoinShares suggests that institutional investors are starting to return to the market, and that retail investors are also becoming more confident.

The report also notes that the recent price momentum, institutional movements on the market, and the recent United States government funding debacle may have all contributed to the inflows. Overall, this is a positive development for the cryptocurrency market, and it suggests that the bottom of the bear market may be near.

Last week, the dominant player in the market, Bitcoin (BTC), saw an increase in investments following a week of losses. BTC-related products attracted $20 million in investments, claiming the majority of weekly inflows, while short positions in Bitcoin experienced outflows of $1.5 million, contributing to total outflows since April reaching $85 million.

Meanwhile, the leading alternative cryptocurrency, Ethereum (ETH), continued its streak of losses as it recorded outflows of $1.5 million. This marks the seventh consecutive week of outflows for ETH.

ETH prices have remained volatile throughout the year, but they have shown significant improvement compared to their poor performance last year. Despite this positive trend and the excitement surrounding the possibility of an Ethereum exchange-traded fund (ETF), Ethereum continues to experience weekly outflows.

Solana (SOL) has remained resilient in a bear market, with inflows of $5 million for the 27th consecutive week, despite little activity in the altcoin space as a whole. The Ethereum competitor also reached its highest total value locked (TVL) this year at $338.8 million, with SOL trading up over 20% this week.

Solana's growth has been attributed to its numerous partnerships, including Visa, as it offers fast payments without the congestion and high fees of the Ethereum network. Overall, this is a positive sign for Solana and the altcoin market as a whole, as it suggests that institutional investors are still interested in investing in cryptocurrencies, even during a bear market.

Cryptocurrency Products Report  Million In Inflows, with Solana Taking the Lead in the Altcoin Revival - news

Despite quarter-to-quarter growth in investment products, trading volumes remained low last week. This suggests that investors are still hesitant to commit to new positions, even as prices have fallen.

Blockchain equities, in particular, saw outflows of $8.4 million, following losses on traditional technology stocks. This suggests that investors are taking profits from blockchain stocks, or are becoming more cautious about the sector.

Institutional investors in multiple jurisdictions are trading in accordance with regional markets, creating a favorable situation in Europe, which continues to lead thanks to its clear regulations.

This week, investors in Europe and Canada registered inflows of $23 million and $17 million, while there was an outflow of $19 million in the United States.

Cryptocurrency leaders continue to criticize the Securities and Exchange Commission's (SEC) policies for their stifling regulations, which are causing investors and builders to leave the country.

In the previous report, Europe recorded an inflow of $16 million, while American investors received $14 million.

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