CoinShares, a prominent provider of crypto exchange-traded funds (ETFs), offers a weekly breakdown of the developments in this specific sector of the cryptocurrency market. In recent weeks, a trend of shrinking exchange-traded funds has been observed. Yet, amidst the gloomy forecast, some silver linings have appeared.

Bitcoin Not the Main Source of Shrinkage Last Week  

CoinShares' latest weekly report reveals that exchange-traded products (ETPs) experienced an outflow of $11.2 million. While significant, this figure pales in comparison to two weeks prior, which saw a hefty outflow of $55 million. Even more alarming was the record outflow from the previous week, a staggering $168 million - marking the highest since last March. 

Historically, the majority of the trading volume originates from Bitcoin (BTC), regardless of the market's direction. However, last week was an anomaly. Bitcoin witnessed inflows amounting to $3.8 million. Moreover, bitcoin ETFs betting on a price drop experienced a withdrawal of $3.3 million. This indicates that investors are not anticipating a price drop but are rather optimistic about its potential rise.

Contrastingly, the most substantial chunk of outflows beyond Bitcoin was from Ethereum (ETH) funds, which saw a decrease by $3.2 million. ETFs not indexed by CoinShares shrunk by $8.8 million.

Solana Takes the Spotlight  

It's imperative to highlight that the money moving out is relatively minor compared to the overall worth of these funds. For context, the combined value of all measured BTC and ETH funds stand at $21.1 billion and $6.9 billion respectively. Hence, the recent shifts appear minimal on this larger canvas.

Most notably, funds themed around Solana (SOL) have grown, registering an increase of $0.7 million. Currently, Solana stands out as the most favored altcoin. Since the beginning of the year, SOL funds have soared from a $26 million increase to an impressive $75 million in value. This growth remains unmatched by any other altcoin. To put things in perspective, ETH funds have diminished by $102 million since the year's start.