XRP and Solana were at the forefront of altcoin exchange-traded product (ETP) inflows for the week ending March 21, as indicated by a digital asset investment firm.
Inflows for other altcoins were relatively modest, with Polygon (MATIC) reporting $400,000 and Chainlink (LINK) capturing $200,000.
Overall, sentiment towards altcoins was mixed. Notably, Ether (ETH) experienced significant outflows totaling $86 million. Additional notable outflows included Sui (SUI), which saw $1.3 million, Polkadot (DOT) also with $1.3 million, and Tron (TRX), which had outflows of $950,000.
Despite the substantial outflows from Ether, the digital asset market managed to reverse a five-week streak of net outflows, showing a total inflow of $644 million. Bitcoin (BTC) spearheaded this recovery with inflows of $724 million, breaking its own five-week losing trend.
As previously reported, Ethereum has faced net weekly outflows for four consecutive weeks, while Bitcoin registered its largest net inflow since January.
Global Sentiment on Digital Asset ETPs Shifts
It was noted that the bulk of the inflows originated from the United States, amounting to $632 million, largely attributed to BlackRock’s iShares Bitcoin Trust (IBIT).
What’s more, positive sentiment was not confined to the US, as Switzerland topped other regions with inflows of $15.9 million, followed closely by Germany with $13.9 million and Hong Kong with $1.2 million.
A Bright Future for Solana and XRP
Despite the overall net outflows from altcoins mainly driven by Ethereum’s performance, Solana and XRP stood out as strong performers.
In the case of Solana, the US market is preparing to launch its first Solana futures exchange-traded funds (ETF), setting the stage for a future spot Solana ETF.
On the other hand, Bitcoin futures-based ETFs received early favor from regulators because of the established regulated market (the Chicago Mercantile Exchange), which offered protections against potential market manipulation. This created controversy surrounding the SEC’s ongoing rejections of spot Bitcoin ETFs that directly hold the cryptocurrency.
A crucial lawsuit by Grayscale successfully challenged this inconsistency, pushing the SEC to reconsider its position and thereby paving the way for the long-anticipated approval of spot Bitcoin ETFs.
Simultaneously, XRP has gained a notable boost from the recent dismissal of the prolonged lawsuit by the SEC against Ripple Labs.