Solana recently experienced a remarkable achievement, with a record-breaking inflow of $24 million, marking its largest since March 2022. This significant milestone is part of a broader trend in the digital asset space, with both Solana and Bitcoin leading the way as the sector recorded net inflows totaling $78 million, the highest since July.
Solana Takes Center Stage in Altcoin Investments
Last week, Solana attracted significant interest from altcoin investors, receiving an impressive $24 million in new investments. This marks the largest inflow of funds into Solana since March 2022 and reaffirms its status as the preferred choice among altcoins for many investors.
According to James Butterfill, the Head of Research, Solana’s growing popularity can be attributed in part to the recent launch of ether futures ETF products. Notably, Solana’s funds have experienced inflows for 28 weeks this year, with only four weeks of outflows in 2023.
While Solana is becoming increasingly popular, Bitcoin continues to lead in terms of inflows, with a total of $43 million. Interestingly, some investors have taken advantage of Bitcoin’s recent price increase to experiment with short Bitcoin product positions, resulting in a $1.2 million inflow during the same period.
Examining Regional Disparities and Trade Volumes
Europe continued to dominate investment, accounting for a whopping 90% of last week’s inflows, while the U.S. and Canada combined saw only $9 million in inflows. This reflects a growing difference in market sentiment, according to Butterfill.
Additionally, trading volumes for exchange-traded products increased by 37%, reaching $1.13 billion for the week. Bitcoin trading volume on trusted exchanges also grew by 16%.
Regarding the newly launched ether futures ETFs in the U.S., they attracted just under $10 million, indicating a lukewarm reception. This stands in stark contrast to the $1 billion amassed by bitcoin futures ETFs in their debut week in 2021.
Butterfill suggests that the current subdued interest in digital assets, compared to the excitement in October 2021, may be a contributing factor to this difference.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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