Bitcoin and Ethereum U.S. spot ETFs recorded a combined $797 million in outflows for the fifth straight day, while Solana ETFs extended the momentum of inflows. On-chain data showed that U.S. BTC spot ETFs recorded $578 million in outflows on November 4th. Ethereum posted $219 million for the fifth consecutive day in outflows.
So far, Bitcoin ETFs have bled over $1 billion in institutional capital, cumulatively showing a sustained cooling off in demand for BTC and ETH. Based on SoSoValue data, BTC has seen $764 million withdrawn since the token hit its all-time high on October 26th this year.
The sustained streak of outflows has been attributed to profit-taking by large institutions and rebalancing of custody. However, it remains unclear why there has been a streak of withdrawals across the cryptocurrency ecosystem.
Solana ETFs posts net inflows despite SOL tumbling over 30%
Solana ETFs have, however, displayed a sustained streak of inflows despite its native token, SOL, tumbling more than 30% over the past month.
According to on-chain data, Solana ETFs have recorded a combined net inflow of $84.88 million over the past month. BSOL made the largest contribution with $78.32 million, while Grayscale’s GSOL ETF contributed the remaining over the period of 30 days.Â
In Contrast to ETH and BTC outflows, SOL ETFs attracted $14.83 million in net inflows on November 4, marking its 6th consecutive day of net inflows.
The sustained net inflows in Solana-based ETFs have shown growing confidence in the asset as an alternative for institutional diversification. Solana-based ETFs also offer higher yield percentages on stacking, with BSOL offering roughly 7%. The Solana-based ecosystem, including DeFi, NFT, and validator networks, has also experienced a surge in activity.Â
Based on on-chain data, Solana has minted over 340 million NFTs so far, with over 461 billion transactions. Investors hope that Solana’s promise as a high-performance, next-generation blockchain with low transaction fees and higher throughput may position the token in close competition with Ethereum.Â
Bitcoin and ETH continue to drop, recording more than 15% and 25% drops, respectively
The shift in capital flows has reflected a change in sentiment within the digital asset ETF ecosystem. Bitcoin and Ethereum may be experiencing temporary profit-taking and macro hedging as institutions rotate capital towards cash or low-risk assets. Solana, on the other hand, is benefiting from the rotation attributed to its rising tokenized product development and enhanced staking.
Based on Farside data, BlackRock’s iShares Bitcoin ETF (IBIT) has recorded over $185 billion in outflows this month alone and over $1 billion in the past five days. The rest of the ETFs under the U.S. spot Bitcoin have not recorded any fund flows today. Regardless, all Bitcoin ETFs have recorded outflows since October 29th.Â
BlackRock’s Ethereum ETF (ETHA) has so far recorded $192 million in outflows in November alone. ETHA has also recorded over $300 million in outflows since October 30. For Fidelity’s FETH, at least $44 million has been withdrawn since the beginning of November.
Another notable flow was from Grayscales ETHE and ETH, which lost a combined outflow of $88 million yesterday, marking roughly $108 million in November.
Bitcoin has recorded more than a 15% drop over the past month, dropping below $104,000 for the first time in a while. BTC was trading at approximately $102,954 at the time of publication. ETH, on the other hand, recorded over 25% drop over the past 30 days, trading at $3,341 at the time of publication.Â
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