According to the latest report from CoinShares, Solana (SOL) and XRP have collectively attracted an inflow of $4.5 million, signaling a surge in interest towards alternative cryptocurrencies over Bitcoin.
In the past week, Bitcoin experienced outflows, as detailed in the CoinShares report, with investors evidently reallocating their assets. Benefiting from this shift, Solana and XRP emerged as primary beneficiaries, drawing in $4.1 million and $0.4 million, respectively.
The report highlights that digital asset investment products sustained outflows for the third consecutive week, amounting to $435 million. Notably, the outflows predominantly affected Bitcoin and Ethereum, with $423 million and $38 million recorded, respectively.
Upon closer examination, the majority of Bitcoin outflows originated from the Grayscale Exchange Traded Fund (ETF), experiencing $440 million in outflows, marking its lowest figure in nine weeks.
While the pace of Grayscale’s outflows appears to be decelerating, inflows from new ETFs have diminished, with last week seeing only $126 million in inflows compared to $254 million the previous week.
This shift in fund allocation towards altcoins could have significant implications for the cryptocurrency market, potentially indicating a broader investor interest in diversifying their crypto portfolios beyond Bitcoin. If this trend persists, it may lead to a gradual erosion of Bitcoin’s dominance by altcoins.
Current market sentiment reflects a blend of caution and anticipation, particularly as traders and investors brace for a pivotal Federal Reserve meeting later this week. Anticipation is mounting regarding the meeting’s potential signal for sustained higher interest rates, prompting market participants to prepare for potential repercussions on digital assets.
At the time of reporting, Solana recorded a 4.80% decline over the last 24 hours, settling at $135.22, while XRP similarly experienced a 2.20% drop within the same timeframe, reaching $0.5081. Bitcoin observed a 1.65% decrease, trading at $62,356 after hitting a week low of $61,928 during today’s trading session.
