Cryptocurrency investment products saw $360 million in outflows last week as investors reacted to Federal Reserve Chair Jerome Powell’s cautious future rate cuts.
Despite Wednesday’s rate cut, Powell said another one in December is “not a foregone conclusion,” combined with the lack of economic data due to the ongoing government shutdown, markets appear uncertain, Coinshares reported on Monday.
Most of the selling pressure came from US markets, which saw $439 million in inflows, partially offset by moderate inflows from Germany and Switzerland. Bitcoin Exchange-Traded Funds (ETFs) led the decline, with $946 million in redemptions.
Although Bitcoin funds have given a pulse of inflows, not all assets have followed suit. Solana stood up, attracting $421 million in inflows, the second largest on record, driven by demand for newly launched US ETFs, lifting the annual total to $3.3 billion.
Ethereum also saw $57.6 million in inflows, although daily activity suggested a mixed sentiment among investors.
The outflows come after crypto products accumulate $ 921 million in outflows Last week, driven by a lower-than-expected consumer price index (CPI) Data Released on October 24.
Related: RETAIL INVERTORS ‘RETREAT’ to $98.5K: 5 Things to Know About Bitcoin This Week
New Solana Staking ETF
The new Solana Staking ETF (BSOL) debuted last Tuesday with $222.8 million in seed assets, signing Strong institutional demand For Solana staking products.
BSOL offers investors direct exposure to Solana (Sol) with a Approximate 7% annual yield from Onchain staking rewards.
By Friday, the Spot Solana ETFS was logged in AFOur straight day of flowadding $44.48 million.
Vincent Liu, Chief Investment Officer at Kronos Research, told Cointelegraph the trend reflects growing interest in yield staking and continued “capital circulation,” as traders take profits from the recent Bitcoin (BTC) and ether (Eth) rally.
Although Solana ETF flows have strengthened, at the time of writing, Sol is trading around $166, down more than 9% in the past 24 hours and around 26% in the past 30 days, according to Coingecko Data.
Magazine: Solana vs Ethereum ETFS, Facebook’s Influence on Bitwise: Hunter Horsley
