As per CoinShares’ most recent Digital Asset Fund Flows report, Solana-focused investment products saw $700,000 in inflows last week, increasing to the $400,000 witnessed the week before for a total of $1,100,000 so far in December. The firm’s study details $30 million in withdrawals from bitcoin investment products last week due to lingering uncertainty around the failure of FTX-related enterprises and the Federal Reserve’s continued hawkish language.
During the preceding week, Bitcoin-focused investment products had withdrawals of $17.5 million, while Bitcoin-shorting investment vehicles received inflows of $1.1 million. The research notes that Solana competitor Ethereum ($ETH) saw its seventh straight week of exits totaling $9.1 million. Overall managed assets for crypto investment vehicles decreased to $22.3 billion.
The price of Solana was significantly influenced by FTX’s failure. Sam Bankman-Fried, CEO of FTX, was detained in the Bahamas a few days back. He is a prominent $SOL advocate and has funded a number of enterprises within the cryptocurrency’s network. As a result of FTX’s failure, investors’ faith in these ventures has been diminished due to his participation in them. While preparing this article, $SOL is trading at $12 after reaching an $11 low in November.
According to statistics from on-chain analytics company Santiment, Solana’s value may recover due to apprehension. This may occur if short sellers begin to close their holdings, resulting in a short squeeze. This happens when the value of an asset increases rapidly and unexpectedly. As short sellers liquidate their holdings, the rush of purchase orders might additionally propel the asset’s value upward.