Investor sentiment toward altcoins shifted noticeably last week, with XRP and Solana dominating inflows into exchange-traded products (ETPs). According to CoinShares’ latest report, XRP-based ETPs attracted $6.71 million, while Solana followed closely with $6.44 million in net inflows during the week ending March 21.
Other altcoins recorded comparatively smaller investments. Polygon (MATIC) logged $400,000 in inflows, and Chainlink (LINK) brought in $200,000. However, the broader sentiment toward altcoins remained mixed, particularly as Ethereum-based products experienced substantial outflows totaling $86 million—the largest for any digital asset last week.
Additional outflows were observed in Sui (SUI) and Polkadot (DOT), each seeing $1.3 million in withdrawals, while Tron (TRX) followed with $950,000 in outflows.
Bitcoin Leads Digital Asset Recovery
Despite Ethereum’s sustained outflows weighing on the altcoin sector, the broader digital asset market saw a notable rebound. According to the report, total inflows across all crypto investment products reached $644 million, ending a five-week streak of consecutive outflows.
Bitcoin spearheaded the recovery, attracting $724 million in net inflows, its strongest weekly showing since January. This marks a significant turnaround for the leading cryptocurrency, which had experienced similar five-week outflows prior to this surge.
Conversely, Ethereum continued to lag behind, registering its fourth straight week of net withdrawals. The divergence between Bitcoin’s strength and Ethereum’s continued weakness re-emphasizes the generally negative sentiments that have been around the Ethereum ecosystem and related exchange-traded products in recent weeks.
Notably, Investor sentiment showed signs of improvement globally, with the majority of inflows originating from the United States. The report shows that the U.S.-based products accounted for $632 million of the $644 million total inflows, largely fueled by strong demand for BlackRock’s iShares Bitcoin Trust (IBIT).
However, the positive momentum wasn’t limited to the U.S. market. Switzerland followed as the second-largest contributor, recording $15.9 million in net inflows, while Germany added $13.9 million. In the Asia-Pacific region, Hong Kong investors contributed $1.2 million, building demand for regulated crypto products across multiple jurisdictions.
Factors Driving Positive Sentiment in the Digital Asset Market
In its March 2025 meeting, the Federal Open Market Committee (FOMC) opted to maintain the federal funds rate within the 4.25% to 4.50% range. This decision reflects a cautious approach amid heightened economic uncertainties, including trade policies and inflation concerns.
The Fed’s commitment to a steady rate environment has provided investors with predictability, fostering a more favorable climate for investments in risk assets, including cryptocurrencies.
Also, the recent de-escalation of trade disputes has alleviated some of the economic uncertainties that previously weighed on global markets. While specific details on tariff reductions or agreements have not been extensively detailed in the latest reports, the general trend toward resolving trade conflicts has contributed to a more stable economic outlook. This stabilization has, in turn, bolstered investor confidence across various asset classes, including digital assets.
President Donald Trump’s recent address at the Digital Asset Summit in New York City marked a significant shift in the U.S. government’s approach to cryptocurrencies. In his speech, President Trump announced initiatives to position the United States as a leader in the crypto space.
Quick Facts:
- XRP and Solana led altcoin ETP inflows with $6.71 million and $6.44 million, respectively, for the week ending March 21.
- Ethereum-based ETPs experienced $86 million in outflows during the same period.
- Bitcoin ETPs attracted $724 million in inflows, contributing to a total digital asset inflow of $644 million.
- The United States accounted for the majority of these inflows, totaling $632 million.
