Bitcoin News Today: Institutions Bet on Solana's Tech Amid Bitcoin ETF Exodus

Bitcoin ETFs Continue Outflows as Solana Gains Institutional Momentum

The U.S. Bitcoin spot ETF landscape saw a net outflow of $566.4 million on November 4, marking the fifth consecutive day of redemptions, according to Farside Investors data. This trend contrasts sharply with inflows into Solana-based exchange-traded products, which attracted nearly $200 million in four days, according to a Coinotag report signaling a potential reallocation of institutional capital amid shifting market dynamics.

Bitcoin's outflows were led by BlackRock's IBIT, which accounted for over 50% of the $799 million in weekly redemptions through November 1, the Coinotag report shows. Fidelity's FBTC and ARK Invest's ARKB also faced significant exits, with $356.6 million and $128.1 million in outflows, respectively, as Farside data indicate. Analysts attribute the exodus to profit-taking following Bitcoin's recent price action and macroeconomic uncertainties, including geopolitical risks and tightening monetary policy, according to a Crypto.news report. Meanwhile, Ethereum ETFs lost $210.43 million in three days, with BlackRock's ETHA leading the decline, per a Coinotag analysis.

Solana, however, emerged as a key beneficiary. Bitwise's BSOL ETF alone drew $417 million in weekly inflows, outpacing Bitcoin's outflows and highlighting growing interest in altcoins with scalable infrastructure, according to the Coinotag report. Grayscale's GSOL added $4 million on November 3, extending Solana's inflow streak to five days, a CoinEdition report noted. The blockchain's ability to process 65,000 transactions per second and its adoption in decentralized finance (DeFi) applications appear to be driving the shift, the Coinotag reporting suggests. Yet, challenges persist: Solana's total value locked (TVL) remains flat at $5.2 billion, indicating liquidity constraints despite ETF gains.

The divergence reflects broader institutional strategies. While Bitcoin's network hashrate hit record highs at 650 EH/s—underscoring its security and dominance—Solana's technical momentum lags, with the SOL/BTC ratio declining 8% quarterly, the Coinotag coverage finds. Still, hedge funds and treasury managers are experimenting with allocations of up to 10% in Solana products, according to Bitwise executives. This cautious optimism is echoed by newly launched ETFs, such as Canary's HBAR and LTCC, which attracted $22.06 million and $855,880 in inflows, respectively, as the Crypto.news piece reported.

Market observers note that Bitcoin's realized cap surged $8 billion to $1.1 trillion, driven by treasury firms and miners expanding operations, according to a Coinotag analysis. American Bitcoin's $314 million ASIC purchase and rising hash rates are seen as long-term bullish signals. However, sustained recovery hinges on renewed ETF inflows and Federal Reserve easing, with analysts projecting Bitcoin could reach $140,000 if institutional buying resumes.

The ETF outflows also highlight evolving risk preferences. Corporate treasurers, unlike institutional funds, are leveraging market weakness to accumulate Bitcoin, viewing volatility as an opportunity rather than a threat. Matador's $100 million Bitcoin allocation and Strategy's $83 billion market cap underscore the maturation of corporate treasury strategies.

As the crypto market navigates Q4 uncertainties, the interplay between Bitcoin's resilience and Solana's institutional pivot will shape investor sentiment. While Bitcoin's outflows suggest caution, altcoin inflows indicate a search for yield and innovation in a fragmented landscape.

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