Crypto ETF Inflows Attract Investor Funds to Solana, Zcash and Hyperliquid

Crypto exchange-traded funds (ETFs) are attracting significant investor funds at an impressive rate. The inflows into altcoin ETFs have been particularly noteworthy, with Solana, Zcash, and Hyperliquid benefiting from this trend.

Solana's spot ETFs led by the Bitwise Solana Staking ETF experienced $153.8 million in inflows during the week ended August 28, which is more than five times the prior week. This surge came alongside a vote that doubled the rate at which new Solana coin issuance declines from 15% to 30%, thereby reducing supply growth.

The proposal will lead to 18.9 million Solana coins never being created during a six-year period. When paired with the successful rollout of its on-chain governance facility and growing ecosystem of tokenized stocks and other projects, there are numerous reasons why investors might want to own more of this coin.

Zcash recently got its first spot ETF when asset manager Grayscale listed The Zcash ETF. Although there isn't any data about how much it experienced in the way of inflows, the coin's price is up by over 45% in the five-day period ended September 7. This suggests that capital may be flowing into the fund.

Hyperliquid, a network and decentralized crypto exchange (DEX), captures transaction fees paid by users and routes most of those fees to holders via coin buybacks. It has recently activated a deal with Coinbase Global and Circle Internet Group that delivers about 90% of the cost-adjusted interest earned on USDC stablecoins held on its platform and spends it on buybacks.

The arrangement could add up to $160 million for buybacks per year, in addition to the roughly $770 million a year already flowing in. As a result, spot Hyperliquid ETFs brought in $56.8 million in inflows during the week ended August 28.