Institutional enthusiasm for major altcoins such as Solana, Cardano, Litecoin, and Sui has cooled sharply amid the prolonged delay of U.S. exchange-traded fund (ETF) approvals. The ongoing U.S. government shutdown has slowed regulatory decisions, driving capital away from non-Bitcoin assets. Consequently, investor sentiment toward altcoins has weakened, even as overall crypto market inflows remain strong, according to CoinShares’ latest fund flow report.
Institutional Flows Shift Toward Bitcoin Amid ETF Delays
CoinShares reported that altcoin inflows have declined substantially. Solana saw inflows of $29.4 million, while XRP registered $84.3 million, both sharply lower from early October peaks.
Solana had earlier hit a weekly record with $706.5 million in inflows, while XRP attracted $219.4 million, signaling a short-term cooling phase. Cardano posted $0.3 million in outflows, reversing $3.7 million of inflows in the previous week. Similarly, Sui recorded $8.5 million in outflows compared to $5.9 million in earlier inflows.
Besides, Chainlink and Litecoin also experienced declining investor interest. Analysts believe the lack of clarity on ETF approval timelines has reduced short-term institutional participation. The delays have forced several funds to pause their accumulation strategies until regulatory certainty improves.
Bitcoin and Ethereum Take Divergent Paths
Despite the weakness in altcoins, overall crypto funds recorded $921 million in inflows. The uptick came as investors gained confidence following softer U.S. CPI data and expectations of another 25-basis-point Federal Reserve rate cut. Bitcoin alone absorbed $931 million in inflows, lifting cumulative investments since the last rate cut to $9.4 billion.
However, Ethereum struggled to maintain investor attention, facing $169 million in outflows after five consecutive weeks of inflows. Spot Ethereum ETFs in the United States registered three days of net outflows, even as ETH prices briefly rebounded above $4,200 before traders booked profits.
Analysts Eye Long-Term Solana Expansion
Meanwhile, Solana has emerged as a standout performer despite institutional outflows. The token trades near $199, marking a 3.5% weekly gain. Analyst curb.sol noted that Solana has confirmed a macro breakout from the $200 zone, with the next target around $1,000, followed by $2,000. The structure mirrors early 2021 patterns, hinting at the beginning of an expansion cycle.
Source: X
Analyst Crypto Patel projected an even broader outlook, predicting Solana could repeat its prior 27,560% growth cycle, potentially reaching $9,200 by 2029. He emphasized that the current phase resembles Wyckoff accumulation, which could lead to a parabolic advance once market confidence returns.
