RWA & DeFi
BlockInsider Crypto ETF Report: Solana Makes History
Crypto ETF flows reverse sharply as Solana posts record outflows, Ethereum weakens, and Zcash loses its winning streak.
BLOCKINSIDERLoadingCrypto ETF flows reverse sharply as Solana posts record outflows, Ethereum weakens, and Zcash loses its winning streak.
Crypto ETF flows turned sharply negative this week as Bitcoin stalled and Ethereum bled. Solana recorded its largest weekly outflow since launch, just two weeks after a record $188 million inflow.
Rising oil prices, bond yields and Iran tensions pushed traders toward risk reduction across digital assets.
Zcash, the recent standout, also lost $93 million as its ETF suffered a first losing week. Together, the numbers show how quickly institutional appetite can reverse when macro pressure meets crowded positioning.
The crypto market endured a rough seven days as conditions turned uncertain. Bitcoin has hovered under the $86,600 mark for over two weeks, repeatedly rejected near $87,000. That stagnation left traders exposed, and a slide toward $83,000 on October 7 triggered over $500 million in liquidations.
Bitcoin's demand also looked thin, with short-term holders selling into every bounce. Leveraged longs bore the brunt, making up about 94% of Bitcoin liquidations.
Stocks reversing from their record highs deepened the cautious mood. Most tokens concluded the week with outflows, except Bitcoin, which noted a mixed week.
September 30 recorded $148 million in outflows, but the remaining days balanced it out. BTC ETFs finished the week with $28 million in inflows. Macro factors also weighed, as oil prices, bond yields, and the dollar climbed amid Iran tensions.
However, ETH suffered the most this week, with weekly net flows closing at $252 million flowing out. That came on top of $138 million in outflows during the days before. ETH slipped below $2,600 on October 7 as ETF outflows stretched to six straight sessions.
The top and favored altcoins fared no better, with XRP noting days of zero net flow. It closed the week at a meager $4.7 million in inflows, while price hovered near $1.50. XRP ETF net assets stand at $1.69 billion, yet fresh capital has dried up this week.
However, the biggest shocker was Solana, which recorded $12.93 million in outflows. This marks its biggest weekly outflow since launch, making history for the wrong reasons. It arrived just two weeks after $188 million in inflows for the week ending September 25.
Cracks appeared on September 30, when funds shed roughly $12.5 million in one session. Fresh outflows followed even as Solana's Alpenglow upgrade advanced on test networks. Profit-taking after a record week and a risk-off backdrop amplified the reversal.
Solana ETFs have attracted roughly $1.6 billion since launch, so this outflow remains small in context. Even so, the shift from record inflows to outflows stands out. Bitwise's BSOL led the September inflows, absorbing about 68% of the record week's total.
The best-performing token of recent weeks, and a major underdog, was ZEC. However, the streak failed to last as it fell prey to bearish market conditions. Grayscale's Zcash ETF suffered its first losing week since launching in August.
ZEC ETFs recorded $93 million in outflows, after attracting $98.2 million just two weeks earlier. Funds had logged no daily inflows since September 22, as of October 3. Bitcoin's drop to $83,351 pulled ZEC down to $1,316, roughly 23% below its recent peak. More outflows are projected for the coming week.
Fresh pressure came from profit-taking after a surge of roughly 250% that carried ZEC near $1,690. Grayscale also split its ZCSH shares three-for-one within its first month of trading.
Outflows eased to $3.57 million on Monday, yet Bitcoin's weakness threatens another round of redemptions.
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