Solana emerged as the lone standout among major assets, showcasing a surge in inflows for the week. The digital asset investment landscape witnessed a notable influx for the first time in half a dozen weeks, spanning from September 22nd to the 28th. This revelation comes courtesy of the most recent Digital Asset Fund Flows Weekly Report, courtesy of the European digital assets management firm, CoinShares.
Leading the pack in this influx were investment products associated with Bitcoin, which saw a substantial infusion of $20.4 million over the course of the week. Surprisingly, Solana’s investment products followed closely behind, netting $5 million in inflows and securing its position as the sole asset displaying positive momentum. According to CoinShares, this marks the 27th consecutive week of inflows for Solana, with only four weeks witnessing outflows in the entirety of 2023. Thus, it firmly solidifies its status as “the darling of the altcoin universe for the year.”
However, on the flip side of this digital coin, Ether products faced a starkly contrasting fate, with outflows amounting to a significant $1.5 million. This unfortunate trend continues unabated, marking the seventh consecutive week of outflows. According to CoinShares, this dire performance reinforces its reputation as “the least favored altcoin.”
The flows concerning other altcoin investment products, including XRP, which had experienced more inflows than Solana in the prior week, were characterized by negativity and minimalism.
Analysts at CoinShares attribute this stagnation in altcoin movement, juxtaposed against Bitcoin’s trend-defying momentum, to a confluence of factors. They opine, “We believe that these inflows are a direct response to a combination of favorable price momentum, apprehensions regarding U.S. government debt prices, and the recent quagmire surrounding government funding.”
The aforementioned quagmire alluded to by CoinShares pertains to the ongoing negotiations concerning U.S. government funding. In the preceding week’s cycle, fears of a funding bill deadlock had cast a shadow of uncertainty, with dire predictions of a U.S. government shutdown looming on October 2nd.
However, in a last-minute turn of events, Senate leaders rallied to secure the passage of a stopgap measure, guaranteeing funding through November 17th. Whether Congress and the President can find common ground for funding beyond this interim measure’s expiration date remains an open question.
Geographically, the leading torchbearers for the week were Germany, Canada, and Switzerland, with digital asset investment product inflows totaling $17.7 million, $17.2 million, and $7.4 million, respectively. Meanwhile, Australia and France, metaphorically speaking, held their ground with meager figures of $100,000 and zero, respectively.
In contrast, the United States witnessed a significant outflow of $18.5 million, with Sweden and Brazil following suit at $1.8 million and $900,000 in outflows, respectively.
