Digital asset investment products recorded $360 million in outflows last week as investors reacted to cautious comments from U.S. Federal Reserve Chair Jerome Powell on the future of rate cuts.
Despite a rate reduction announced Wednesday, Powell’s statement that another cut in December was “not a foregone conclusion,” coupled with limited economic data due to the government shutdown, spurred a wave of risk-off sentiment, according to CoinShares.
U.S. Leads Outflows as Bitcoin ETFs See Heavy Selling
The U.S. market accounted for $439 million in redemptions, partially offset by small inflows in Germany and Switzerland.
Bitcoin ETFs led the decline with $946 million in outflows, underscoring profit-taking after the recent rally.
However, not all assets were affected equally.
Solana stood out as a major gainer, attracting $421 million in inflows — its second-highest total on record — as investors poured into new U.S.-listed Solana ETFs.
Ethereum also posted modest inflows of $57.6 million, though daily activity reflected mixed investor sentiment.
The reversal follows $921 million in inflows during the previous week, which had been driven by lower-than-expected U.S. inflation data.
Solana Staking ETF Sees Strong Launch
Bitwise’s new Solana Staking ETF (BSOL), launched last Tuesday with $222.8 million in seed assets, signaled significant institutional demand for staking-based investment products.
BSOL offers exposure to Solana (SOL) with an estimated 7% annual yield from onchain staking rewards.
By Friday, spot Solana ETFs had logged a fourth consecutive day of inflows, totaling $44.48 million.
Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph that the surge reflects rising interest in yield-generating crypto investments and continued “capital rotation” out of Bitcoin and Ether.
Despite the ETF inflows, SOL traded around $166 on Monday — down 9% over the past 24 hours and 26% over the month, according to CoinGecko.
