Last week, Bitcoin and Ethereum exchange-traded funds (ETFs) saw $1.17 billion in outflows, while the Solana ETF alone saw $118 million inflows, showing a stark contrast.
According to digital asset management firm CoinShares, BlackRock's Bitcoin and Ethereum ETFs alone saw $876 million in outflows. Fidelity's Bitcoin fund also saw $438 million in losses.
The direct cause of the capital outflow is the sharp decline in expectations for a December interest rate cut by the Federal Open Market Committee (FOMC). According to the CME FedWatch tool, the probability of a rate cut, which stood at 91.7% a month ago, has now fallen to 64.6%. Federal Reserve Chairman Jerome Powell's cautious stance on further rate cuts also dampened investor sentiment.
Meanwhile, Solana has seen steady inflows since its launch. The Bitwise Solana ETF, launched on October 28th, has seen steady demand, attracting $118 million in new capital last week alone. The HBAR ETF also attracted $26.8 million, and hyperliquid-related products attracted $4.2 million in new capital.
“The investment fever for altcoins continues,” said James Butterfill, head of research at CoinShares. “Some of the funds that have left large cryptocurrencies are being redistributed to relatively undervalued altcoins.”
