Digital assets manager CoinShares says that institutional crypto investors poured only minor inflows of capital into digital asset investment products last week.
Crypto speculators pulled out the largest weekly amount of cash on record from funds giving exposure to Solana (SOL), the fifth-largest cryptocurrency by market cap, according to European asset manager CoinShares.
In a Monday report, the firm said that $39 million left Solana funds available for European and Asian investors last week, setting a record for SOL fund outflows. An exchange-traded product (ETP) giving American investors Solana exposure doesn’t yet exist in the United States, though multiple firms have filed to offer such funds.
“Solana saw outflows of $39 million, the largest on record, as it faced a sharp decline in trading volumes of meme coins, on which it heavily relies,” CoinShares said Monday.
Meme coins are highly speculative cryptocurrencies that tend to be incredibly volatile, typically going up and down in value more than other digital assets. Such digital coins and tokens run on a number of crypto networks, but Solana has become the home of many of the biggest recent meme coins thanks to the network’s low fees.
According to CoinShares, last week marked a huge drop in trading volumes for institutional investment products due to a change in expectations of the Federal Reserve’s next move.
Overall, crypto fund inflows are down week over week, falling to $30 million last week after hitting $176 million the week prior. While ETH and XRP products brought in $4.2 million and $0.2 million respectively, multi-asset investment vehicles saw $21 million in inflows.
[Source: Decrypt]
