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August 19, 2024

Solana Sees Biggest Institutional Outflows on Record Amid Slowdown in Memecoin Volume: CoinShares

By Daily Hodl Staff

Digital assets manager CoinShares says that institutional crypto investors poured only minor inflows of capital into digital asset investment products last week.

In its latest Digital Asset Fund Flows report, CoinShares says that Ethereum (ETH) competitor Solana (SOL) institutional crypto investment products saw record outflows last week amid an apparent loss of interest in memecoins.

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“Solana saw outflows of US$39m, the largest on record, as it faced a sharp decline in trading volumes of memecoins, on which it heavily relies.”

Source: CoinShares

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.

“Weekly trading volumes on investment products fell to nearly 50% of the week prior at US$7.6bn, as recent macroeconomic data implied the FED were less likely to cut interest rates by 50 basis points in September.”

Regionally, the Americas, including the United States, Canada, and Brazil, brought in $78.4 million in inflows while Switzerland and Hong Kong combined for $44 million in outflows.

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The leading crypto by market cap, Bitcoin (BTC), led investment products with the most inflows at $42 million.

While ETH and XRP products brought in $4.2 million and $0.2 million respectively, multi-asset investment vehicles saw $21 million in inflows.

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