Ethereum Rival Solana Looks Appealing To Investors

According to CoinShares, institutional investors are showing increased interest in Solana (SOL), a competitor of Ethereum (ETH), while taking profits from Bitcoin (BTC).

The latest Digital Asset Fund Flows Weekly Report from CoinShares reveals that digital assets experienced outflows of more than $100 million for the third consecutive week.

The report states, “Digital asset investment products saw outflows this week, totaling US$107m with profit taking gathering pace in recent weeks.”

CoinShares notes that BTC saw the majority of outflows, totaling US$111m, which is the largest weekly outflow since March when US regulatory scrutiny began to intensify. Additionally, for the first time in 14 weeks, the outflows into short bitcoin have stopped.

Last week, the cryptocurrency market experienced a total outflow of $117 million due to a decrease in Ethereum and Bitcoin investments. However, altcoins had inflows of approximately $10 million, which brought the net outflows down to $107 million.

It seems that the sentiment towards altcoins is becoming more positive, and this helped to offset the outflows in Bitcoin and Ethereum. Solana had the most significant inflows, with a total of $9.5 million, marking the largest single week of inflows since March 2022.

While SOL enjoyed inflows of nearly $10 million, XRP and Litecoin (LTC) took in inflows of $0.5 million and $0.46 million, respectively. On the other hand, Uniswap (UNI) and Cardano (ADA) experienced outflows of $0.8 million and $0.3 million, respectively.

In other news, in a recent interview with Bloomberg, Cathie Wood, CEO of ARK Invest, shared her positive perspective on the future of Coinbase, a prominent cryptocurrency exchange based in the US.

Despite ARK’s decision to sell some of its Coinbase shares for profit-taking purposes, Wood maintains a bullish outlook on the exchange.

She believes that the recent legal dispute between Ripple and the SEC, which resulted in a significant ruling on the sale of the XRP token, is a favorable development for cryptocurrency exchanges.