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Bright and dark sides in the cryptocurrency ETF market: Accelerating outflows from Bitcoin and Ethereum
Significant divergence in capital flows is occurring in the cryptocurrency ETF market. According to Lookonchain’s analysis, large-scale funds are continuously being withdrawn from Bitcoin and Ethereum ETFs, while Solana ETFs are experiencing steady capital inflows contrary to market trends. This contrasting movement symbolizes a shift in investor asset allocation strategies and suggests a major change in the relative strength among different assets within the market.
Daily Capital Outflows from Bitcoin and Ethereum ETFs
On-chain analysis shows that Bitcoin ETFs recorded a net outflow of 3,495 BTC (approximately $300 million at current prices) on the same day, while Ethereum ETFs experienced a net outflow of 17,969 ETH (about $52.74 million). Over the past 7 days, these outflows have expanded further, reaching 8,778 BTC (around $768 million) for Bitcoin ETFs and 29,287 ETH (approximately $85.96 million) for Ethereum ETFs.
The backdrop for this large-scale capital outflow is the slowdown in inflows from major asset management firms like BlackRock and Grayscale. These large institutional investors have traditionally acted as buyers in the market, but their influence appears to be weakening.
Capital Accumulation in Solana ETFs Contrary to Market Trends
In contrast, Solana ETFs recorded a net inflow of 6,401 SOL (about $794,000) on the same day, with a total net inflow of 117,433 SOL (around $14.56 million) over the past 7 days. This indicates that, even amid a broad bearish market trend, Solana continues to attract strong demand from certain investor segments.
Particularly noteworthy is Fidelity’s activity. The company has increased its holdings of Solana by over 65,000 SOL within the past week, demonstrating significant institutional interest in Solana ETFs. It suggests that Solana may be positioning itself differently from Bitcoin and Ethereum through technological advancements and ecosystem expansion.