- The cryptocurrency market saw $644 million in inflows, with XRP and Solana attracting millions, while Ethereum faced $86 million in outflows amid ongoing investor concerns.
- Bitcoin dominated with $724 million in inflows, driven by institutional demand and optimism around spot Bitcoin ETFs.
The cryptocurrency market saw a significant turnaround in the week ending March 21, with digital asset inflows reaching $644 million. While Bitcoin led the way with massive investments, XRP and Solana emerged as the top-performing altcoins, attracting millions in new capital. Meanwhile, Ethereum continued to struggle, facing its fourth consecutive week of outflows.
Bitcoin Dominates Inflows
Bitcoin was the biggest winner, pulling in $724 million in inflows—its highest since January. A major contributor to this surge was BlackRock’s iShares Bitcoin Trust (IBIT), which played a crucial role in the U.S. market’s total inflows of $632 million. Other regions also saw positive trends, with Switzerland recording $15.9 million, Germany adding $13.9 million, and Hong Kong bringing in $1.2 million. However, not all markets experienced growth, as Canada and Sweden reported net outflows.
XRP and Solana Shine Amid Ethereum’s Struggles
Among altcoins, XRP and Solana stood out, attracting $6.71 million and $6.44 million in inflows, respectively. The surge in XRP investments can be largely attributed to the recent decision by the Securities and Exchange Commission (SEC) to drop its lawsuit against Ripple Labs. This legal victory significantly boosted investor confidence in the token.
Similarly, Solana’s rising inflows were driven by growing anticipation of the first Solana futures ETF in the U.S. If approved, this could set the stage for a spot Solana ETF, further solidifying the asset’s market position.
Ethereum Faces Continued Outflows
Ethereum-based exchange-traded products (ETPs) faced $86 million in outflows, continuing a four-week streak of investor pullbacks. The weak performance of Ethereum also had a ripple effect on other altcoins, with Sui and Polkadot each losing $1.3 million and Tron seeing $950,000 in outflows.
The Bigger Picture: Bitcoin ETFs and Market Sentiment
A key factor influencing market movements has been the SEC’s evolving stance on spot Bitcoin ETFs. Initially, only futures-based Bitcoin ETFs were approved due to regulatory concerns about market manipulation. However, a legal challenge from Grayscale forced the SEC to reconsider, eventually leading to the approval of spot Bitcoin ETFs. This shift has played a crucial role in boosting investor sentiment and increasing institutional participation in the crypto market.
Despite Ethereum’s ongoing struggles, the broader digital asset market has shown signs of recovery, thanks to strong Bitcoin inflows and notable performances from XRP and Solana. As regulatory clarity improves and new investment products emerge, the crypto market’s resilience continues to attract institutional and retail investors alike. The coming weeks will be crucial in determining whether this momentum can be sustained or if Ethereum’s struggles will drag the market down once again.
