Bitcoin fund inflows offset largest SOL outflows on record: CoinShares

Amid several weeks of turbulent market activity, digital asset investment vehicles saw minor inflows of $30 million for the week of Aug. 17, 2024, according to CoinShares.

The United States led the charge, with $62 million in capital inflows for the week, countered by approximately $50 million in combined outflows from the Hong Kong, German, and Swiss markets.

Unsurprisingly, Bitcoin (BTC) investment products recorded the most significant inflows, attracting $42 million of capital during the week. Bitcoin shorting vehicles experienced $1 million in outflows, a sign that investors have confidence in the future price appreciation of the store-of-value digital asset.

Ether (ETH) investment vehicles saw minimal inflows of $4.2 million for the week of Aug. 17, though the report explained these inflows were "masked" by $118 million in outflows from Grayscale's Ethereum Trust, which mostly offset the $104 million of inflows into newer Ethereum investment funds.

Solana (SOL) investment products were this week’s biggest loser, with roughly $39 million in outflows, the largest outflow on record. According to CoinShares, the heavy SOL outflows were primarily due to a slowdown in Solana’s meme market—a key driver of Solana's network revenue.

Institutional interest in digital asset investment vehicles remains high

Despite a $528 million outflow from digital asset investment funds and products during the week of Aug. 3, institutional interest in digital assets remains high, as evidenced by strong inflows into BlackRock's iShares Bitcoin Trust (IBIT) ETF and Fidelity's Wise Origin Bitcoin Fund (FBTC) of $20.3 million and $61.3 million, respectively.

This strong interest is also backed up by the behavior of investment advisers, who increased their exposure to Bitcoin exchange-traded funds during the second business quarter of 2024.

What's going on with Ethereum?

Since the launch of Ethereum ETFs in the United States, the price of Ether has dipped by 26%, accompanied by a supply increase of 60,555 ETH, defying expectations of a price increase following the introduction of the ETFs.

Aurelie Barthere, senior research analyst at Nansen, recently told Cointelegraph that this lack of interest in Ethereum among investors was mainly due to the fear, uncertainty, and doubt regarding the current macroeconomic outlook and a curtailed risk appetite among market participants.