Digital asset investment funds have continued with another week of inflow, with Solana seeing good inflows, according to the weekly crypto asset flows report by CoinShares. According to the report, these funds witnessed $2.2 billion worth of inflows last week, the highest recorded since July.
As expected, Bitcoin remains the dominant player, accounting for the lion’s share of both inflows and trading activity, with Ethereum coming in second. Interestingly, Solana also came in with a third consecutive week of inflow in the tune of $2.4 million.
Positive Week For Institutional Investors
Last week marked another positive chapter for cryptocurrency prices, as the market sustained its upward momentum fueled by growing investor confidence carried over from the prior week. This optimism was not limited to crypto traders, as institutional investors also mirrored the positive sentiment and doubled down on inflows into cryptocurrency-linked investment funds.
According to the CoinShares’ report, this positive sentiment was as a result of increasing expectations of a Republican victory in the upcoming US elections. The political outlook sparked a notable 30% jump in the weekly trading volume of crypto investment funds. At the same time, a consecutive increase in the spot price of cryptocurrencies brought the value of the total assets under management closer to $100 billion.
However, despite the robust inflows into Bitcoin, Short-Bitcoin products also saw a notable $12.3 million in inflows, the largest since March. This suggests that while many investors remain bullish on Bitcoin, a portion still holds a bearish outlook and they continue to against market corrections.
Ethereum followed with a strong performance, closing the week with $57.5 million in inflows. This marked a complete reversal of the previous week’s $9.8 million outflows.
In a surprising turn of events, multi-asset investment products saw outflows of $5.3 million, ending a 17-week streak of consecutive inflows.
Investors Are Still Bullish On Solana
Another interesting trend emerged with Solana. Despite having a relatively subdued week in terms of its spot price, especially when compared to major assets like Bitcoin and Ethereum, Solana-based investment products continued to exhibit strong performance among institutional investors.
This persistent interest highlights that many institutional investors are still positioning themselves for what they believe could be a significant upward movement in Solana’s price, with expectations mounting for a break above the $170 level. As such, Solana-based investment products were able to attract $2.4 million worth of flows, a 300% increase from $0.6 million inflows in the previous week.
Interestingly, regional flows revealed a highly divided landscape, as the majority of countries experienced outflows from institutional investors last week. The most notable outflows were from products based in Canada, Sweden, and Switzerland, which had outflows of $20 million, $18 million, and $15 million, respectively.
All the heavy lifting was done in the United States, further relaying the growing sentiment of a crypto-positive government after the upcoming election. As such, US-based products had $2.27 billion worth of inflows.
