Bitcoin (BTC) and Solana (SOL) Spearhead Surge in Crypto Inflows After Five-Week Lull

• Bitcoin and Solana investment products break five-week streak of outflows, attracting significant inflows.
• Despite a decrease in trading volume, the investment products managed to amass $130 million.
• Ethereum products, however, experienced outflows due to regulatory uncertainty.

Bitcoin and Solana lead the way in crypto inflows, breaking a five-week streak of outflows despite a decrease in trading volume. Ethereum, however, struggles with outflows due to regulatory uncertainty.

Bitcoin and Solana Break Outflow Streak

Bitcoin [BTC] investment products have finally broken the five-week streak of outflows and attracted $144 million in weekly inflows, according to a recent report by CoinShares. Solana [SOL] also registered $5.9 million in inflows, contributing to the overall positive net value. Despite the increase in capital, the Exchange Traded Products (ETP) volume dropped compared to the average weekly volume in April, indicating a declining interest in interacting with crypto products.

Trading Volume Falls, Capital Rises

While the average ETP volume in April was $17 billion, last week it only hit $8 billion. Despite this decrease, the products were able to amass inflows totaling $130 million. This increase in capital is linked to the growing interest in crypto products in Hong Kong and low outflows registered by ETFs in the U.S.

Bitcoin and Solana Outperform Ethereum

With Bitcoin’s price increasing by 2.72% in the last 24 hours and Solana’s by 7.44%, it seems that investing in these cryptocurrencies was a wise choice. The market confidence in BTC and SOL is evident from their Weighted Sentiment. Bitcoin’s Weighted Sentiment was 0.201, indicating largely positive comments about the coin. For SOL, it was -0.429, a notable improvement from what the metric was on the 12th of May, confirming that the bearish bias around Solana was waning.

Ethereum Struggles with Regulatory Uncertainty

On the other hand, Ethereum [ETH] products experienced outflows worth $14.4 million. The fading optimism about the approval of the Ethereum ETF application was the major reason for the decline. Low interaction by the U.S. regulators with ETF issuer applications for a spot Ethereum ETF has increased speculation that the ETF approval is not imminent, reflecting in the outflows.

Conclusion

While Bitcoin and Solana investment products have managed to break the five-week streak of outflows, Ethereum struggles with outflows due to regulatory uncertainty. Despite a decrease in trading volume, the crypto market continues to attract significant capital, indicating a growing interest in crypto products.