Bitcoin and Ethereum Face Outflows, While solana Gains Momentum
Recent market activity, as reported in the OKX TR Alphas newsletter, indicates a shift in investor behavior. Whales – entities holding between 10 and 10,000 Bitcoins – have sold off 38,366 Bitcoins since October 12, 2023. Conversely, individual wallets holding less than 0.01 Bitcoin have collectively added 415 Bitcoin during the same period.
Institutional investment has also seen movement. BlackRock’s spot Bitcoin ETF, IBIT, experienced outflows of $186.5 million on November 3, 2023, leading the decline in institutional capital.
Despite the downturn in Bitcoin and Ethereum prices, Solana-based ETFs have bucked the trend, recording net inflows of $70 million on November 3, 2023. Bitwise’s BSOL ETF, in particular, has seen strong performance, attracting $417 million in its first week of trading, placing it 16th among all ETFs by weekly flows.
Analysts attribute the interest in Solana to a capital rotation, driven by the potential for a 7% return through staking, which is attractive in an environment where US Treasury bond yields are around 5%.
