Altcoin ETF Inflows Boost Solana, Zcash, and Hyperliquid

Crypto exchange-traded funds (ETFs) have seen significant inflows in recent weeks, particularly in altcoin funds. The Solana (SOL), Zcash (ZEC), and Hyperliquid (HYPE) ETFs are among those that have experienced substantial gains.

Solana's spot ETF, led by the Bitwise Solana Staking ETF, saw inflows of $153.8 million in the week ended Aug. 28, more than five times the prior week. This surge in investment coincides with a network vote to double the rate at which new Solana coin issuance declines, reducing supply growth and increasing scarcity.

Zcash recently launched its first spot ETF through Grayscale's The Zcash ETF. Despite the lack of data on inflows, the coin's price has risen by over 45% in the five-day period ended Sept. 7. A critical security flaw was addressed in late July with a network upgrade.

Hyperliquid's buybacks have received a boost from its deal with Coinbase Global and Circle Internet Group, which directs interest earned on USDC stablecoins to the network for buybacks. This addition could bring an estimated $160 million per year to buybacks.