Solana Products See Record Outflow of $39M Amid Meme Coin Trading Slump

Digital asset investment products experienced mixed results last week, receiving a total inflow of $30 million, with Solana products seeing record outflow.

According to the latest update from CoinShares, Bitcoin investment products led the charge with $42 million in inflows, followed by Ethereum-based products with $4.2 million.

However, Solana-based investment products faced its largest recorded outflow of $39 million. This is largely attributed to a sharp drop in meme coin trading volumes, an area where it has largely dominated.

Meanwhile, the broader market experienced a dip in weekly trading volumes, which fell by almost half to $7.6 billion, as macroeconomic data suggested that the Federal Reserve was unlikely to reduce interest rates by 50 basis points in September.

Diverging Provider Performance 

As CoinShares data show, investment product providers experienced diverging performances, with established players losing ground to newer entrants. BlackRock’s iShares ETFs led the week with significant inflows totaling $147 million.

Conversely, Grayscale Investments continued its downward trend, seeing $311 million in outflows during the week. This added to their month-to-date (MTD) outflows of $1.12 billion, bringing year-to-date (YTD) outflows to a staggering $18.7 billion. 

Other providers, such as Fidelity ETFs and 21Shares AG, showed mixed results. Fidelity gained $82 million in weekly inflows but reported MTD outflows of $148 million. On the other hand, 21Shares faced $48 million in outflows this week and a $40 billion outflow in its MTD performance.

Global Differences in Investor Sentiment

The geographical distribution of crypto fund flows also showed significant regional differences. The United States led in weekly inflows with $62 million, highlighting strong demand from U.S. investors despite MTD outflows of $244 million. Brazil and Canada followed with $7.2 million and $9.2 million weekly inflows, respectively. 

Notably, Canada has registered YTD outflows of $443 million, though it recorded weekly and monthly positive flows of $9.2 million and $42.4 million, respectively.

Switzerland experienced the largest outflows this week at $29.7 million, with Hong Kong following at $14.3 million. Both countries continued to see MTD outflows despite positive YTD inflows for Switzerland. These regional trends underscore varying levels of confidence in different markets.