Small Altcoin ETFs Have Limited Impact on Coin Prices

A recent week saw the combined inflows of Dogecoin, Litecoin, and HBAR ETFs reach under $10 million. This is a far cry from the daily trading volume of Dogecoin, which reached $854 million on October 3. The figures suggest that these small altcoin ETFs have a limited impact on the prices of the coins they represent.

Chainlink's funds, on the other hand, saw inflows of about $8.3 million, making it the largest among the smaller coins. Its funds hold about $230 million in assets, which is roughly 2% of Chainlink's total market value of $10.5 billion. This size advantage might lead to more regular orders through advisory platforms.

However, price changes have a more significant impact on these funds than the actual inflows of new capital. For instance, Polkadot's funds hold about $11 million yet have seen only $2.6 million invested, about a quarter of their current worth. Similarly, Avalanche's funds hold $57 million against $29 million ever invested, despite minor inflows of about $268,000 during the week.

Conversely, Litecoin and HBAR show a different trend. Litecoin's funds hold about $14.7 million, which is slightly less than the $15.8 million invested, while HBAR funds hold $80 million against $114 million, about 30% less than investors put in.

The study also suggests that daily trading volumes far exceed the money flowing into these funds. This indicates that trading activity in the coins themselves, not their ETFs, continues to drive price movements in Dogecoin, Litecoin, and HBAR.