- Bitcoin dominated a lion’s share of a staggering 99 percent of all the weekly inflows.
- Altcoins like Cardano, Solana, and Binance saw net inflows but Ethereum witnessed net outflows.
The crypto market is preparing for the launch of the next bull run. Last week witnessed some of the most important developments with the launch of two Bitcoin ETFs from ProShares and Valkyrie. This has since triggered record-high inflows on a weekly basis.
On Monday, October 25, CoinShares published a report stating that inflows for the digital asset investment products totaled $1.47 billion, the largest on record. At the same time, the total assets under management reached a record high of $79.2 billion. The Coinshares report mentions:
The record inflows were a direct result of the US Securities & Exchange Commission allowing a Bitcoin ETF investing in futures and the consequent listing of two Bitcoin investment products with inflows totalling US$1.24bn.
With this, the year-to-date inflows for 2021 sit at $8 billion. Thus, it has already surpassed the record of $6.7 billion inflows witnessed for the entire last year of 2020.
Investors flock to Bitcoin
Of course, Bitcoin dominated a giant share of 99 percent with record inflows standing at $1.45 billion. Inflows in other Bitcoin products also stood at a total of $138 million. With the launch of the Bitcoin ETF, the world’s largest cryptocurrency has been grabbing headlines all over.
Last week, the BTC price touched an all-time high of $67,000 before some partial retracement. As of press time, Bitcoin is trading at $62,628 with a market cap of $1.18 trillion.
Altcoins see inflows but Ethereum in the negative
Apart from Bitcoin, money continued to flow into the altcoin space as well. Some of the most notable altcoins seeing inflows are Cardano, Solana, and Binance. Ethereum-killer Solana has been the top choice for investors recently.
On Monday, October 25, the Solana (SOL) price touched an all-time high of $218 becoming the sixth-largest cryptocurrency by market cap. Just over the last two months, Solana has gained massive popularity with the SOL price skyrocketing by 400 percent in this period.
Furthermore, the DeFi activity on Solana has also shot up significantly as the blockchain emerges as a strong competitor to Ethereum. the total value locked (TVL) for all the combined DeFi assets on Solana stands at $13.6 billion.
For the last week, inflows in Solana totaled $8.1 million. On the other hand, the world’s second-largest cryptocurrency Ethereum (ETH) witnessed net outflows. For the third consecutive week, Ethereum witnessed net outflows of $1.4 million.
CoinShares notes that Ethereum is currently undergoing minor profit-booking as the price hovers around the all-time high. In this month of October, Ethereum has followed the Bitcoin rally and is up 40 percent so far.
The altcoin space has played a crucial role in the crypto market rally this year. If Bitcoin continues to rally in the rest of 2021, the altcoins would be following too.
