XRP and Solana led all altcoin-based exchange-traded product (ETP) inflows during the week ending March 21, with $6.71 million and $6.44 million respectively, according to digital asset investment firm CoinShares.
Other altcoin inflows were comparatively modest, with Polygon (MATIC) logging $400,000 and Chainlink (LINK) adding $200,000.
Sentiment toward altcoins remained mixed overall, as Ether (ETH) alone saw significant outflows totaling $86 million. Other notable outflows included Sui (SUI), with $1.3 million, Polkadot (DOT), with $1.3 million and Tron (TRX) with $950,000.
Despite Ether’s substantial outflows dragging down the altcoin sector, digital assets collectively reversed a five-week streak of net outflows, registering inflows of $644 million. Bitcoin (BTC) led this recovery with inflows amounting to $724 million, snapping its own five-week negative streak.
As Cointelegraph reported, Ethereum has now experienced net weekly outflows for four consecutive weeks, while Bitcoin recorded its largest net inflow since January.
Sentiment on digital assets ETPs shifting across the world
CoinShares noted that the majority of inflows originated from the US, which accounted for $632 million, driven primarily by BlackRock’s iShares Bitcoin Trust (IBIT).
Positive sentiment, however, extended beyond the US, with Switzerland leading other regions at $15.9 million, followed closely by Germany ($13.9 million) and Hong Kong ($1.2 million).
Stars lining up for Solana and XRP
Although altcoins collectively suffered a net outflow driven primarily by Ethereum’s performance, Solana and XRP emerged as the standout altcoin performers.
In Solana’s case, the US market is poised to introduce its first Solana futures exchange-traded funds (ETF), potentially paving the way for a future spot Solana ETF.
In Bitcoin’s case, the approval of futures-based ETFs was initially favored by regulators due to the existence of a regulated market (the Chicago Mercantile Exchange), which provided assurances against potential market manipulation. However, this raised controversy over the SEC’s continued rejection of spot Bitcoin ETFs, which directly hold the cryptocurrency.
A pivotal lawsuit by Grayscale successfully challenged this inconsistency, compelling the SEC to revisit its stance and ultimately paving the way for approval of the long-awaited spot Bitcoin ETFs.
Meanwhile, XRP has seen a significant boost from the recent dismissal by the SEC of its long-running lawsuit against Ripple Labs.