Big investors have pulled some money out of Bitcoin products, but they’re still eyeing up the alts—with Solana (SOL) attracting the most attention.
Investors plugged $21 million into crypto funds last week, digital asset fund manager CoinShares said in a Monday report. Most of the cash—$10.6 million—went into SOL products, the report added.
SOL, the sixth biggest cryptocurrency by market cap, has been the coin of the moment for some time. Since November, its value has shot up—mainly because big companies have shown interest in its blockchain and traders betting it would crash were forced to exit their positions leading to a price bump.
CoinShares added that investors also put money into Cardano, XRP, and Chainlink. It continued that the outflows of $16 million ended an 11-week run of inflows. But it’s not a sign that the mood has soured on crypto funds, wrote James Butterfill, CoinShares head of research. It’s more likely that the withdrawals were a sign of “profit-taking rather than a turn in sentiment towards the asset class.”
“Trading activity remained well above the year average though, totalling $3.6 billion for the week, compared to the year-to-date average of $1.6 billion,” he noted.
Investors have flooded crypto products such as Grayscale, 21Shares, and ProShares with cash as hype surrounding the space grows.
Interest in Bitcoin and crypto has surged this year as investors await a spot Bitcoin exchange-traded fund (ETF) product. Analysts in the space say that it is expected the long-awaited investment vehicle will get approval in the next month.
A Bitcoin ETF will track the price of the digital asset and allow investors to get exposure by buying shares. A number of high-profile companies—including BlackRock—have applied to the U.S. Securities and Exchange Commission to release one.
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