Bitcoin Drop: Institutionals Are Withdrawing Their Funds, Solana and XRP Are Rising

Last week, with leading digital assets like Bitcoin and Ethereum losing value, institutional investors withdrew significant amounts of funds. During this period, a total of $812 million was withdrawn from digital asset investment products. However, contrary to this negative situation, the increasing interest in alternative cryptocurrencies like Solana and XRP did not go unnoticed.

The outflows faced by crypto funds were triggered by the revised GDP and durable goods orders data released in the US, which came in much higher than expected. This situation has heightened concerns that the two planned interest rate cuts this year may not materialize. However, total fund inflows since the beginning of the year remain at $39.6 billion, maintaining a trajectory quite close to last year's record levels.

Looking at regional data, the majority of the outflows, totaling $1 billion, originated from the US. In addition, inflows of $126.8 million occurred in Switzerland, $58.6 million in Canada, and $35.5 million in Germany. This situation indicates that the negative sentiment is largely confined to the US.

Last week, Bitcoin funds saw outflows of $719 million. However, the lack of a significant increase in short Bitcoin products suggests investors believe the selling pressure is low-motivated and temporary. Ethereum, on the other hand, had a challenging week with $409 million in outflows. Although it has seen $12 billion in inflows since the beginning of the year, the net inflows in September remaining at only $86.2 million is noteworthy.

The most striking performance of the week was shown by Solana, which attracted a total of $291 million in inflows to funds. XRP also stood out during this period with $93.1 million in inflows. Experts state that these increases for both assets are due to the anticipated spot ETF approval in the US.