Last week marked a notable shift in the landscape of crypto investment products, as they reversed previous trends of outflows, especially in Bitcoin, Ether, and Solana exchange-traded products (ETPs). During this period, global crypto ETPs garnered a substantial $3.3 billion in inflows, boosting overall assets under management (AUM) to approximately $239 billion. This figure sits just shy of the record AUM of $244 billion reached in August.
The inflow surge coincided with modest price gains in underlying cryptocurrencies. Bitcoin (BTC), which was trading at $111,900 on September 8, rose to $115,600 by Friday, a 3.3% increase. Ether (ETH) also experienced gains, climbing from $4,300 to $4,500 over the week, reflecting a 4.6% uptick. Solana (SOL) emerged as the standout performer, with its price surging from $214 to $239, an impressive 11.6% gain, according to data from CoinGecko.
James Butterfill, head of research at CoinShares, indicated that Bitcoin-based products saw a significant revival last week, recording inflows of $2.4 billion—their highest weekly performance since July. In stark contrast, short Bitcoin products, which bet against the asset, experienced modest outflows.
Ether-based investment vehicles also saw a notable turnaround, breaking a trend of outflows with four consecutive days of inflows totaling $646 million. This pivot in investor sentiment is indicative of a broader shift in the crypto market.
In addition, Solana ETPs claimed the spotlight with their own success, experiencing their largest single-day inflow of $145 million on Friday, which contributed to a total of $198 million for the week. This surge in interest was partly driven by Forward Industries’ announcement of a $1.65 billion Solana treasury, bolstered by commitments from major players in the crypto space, including Galaxy Digital, Jump Crypto, and Multicoin Capital.
In conjunction with this announcement, Galaxy Digital embarked on a significant acquisition spree, acquiring up to $1.5 billion in Solana tokens, with a remarkable $305 million secured in just one day last week.
As investor confidence grows, the crypto market seems to be regaining traction, reflecting both increased interest in various digital assets and a renewed optimism that could shape the trading landscape in the coming weeks.
