The latest report from CoinShares reveals a notable shift in investor sentiment within the cryptocurrency market, with altcoins like Solana (SOL) and XRP attracting significant inflows compared to Bitcoin.

Bitcoin experienced outflows during the past week, with investors seemingly reallocating their assets. In contrast, Solana and XRP emerged as the beneficiaries of this shift, drawing in a combined inflow of $4.5 million. Specifically, Solana attracted $4.1 million, while XRP saw inflows of $0.4 million.

Digital asset investment products, however, recorded outflows for the third consecutive week, totaling $435 million. Bitcoin and Ethereum were the primary assets affected, with outflows of $423 million and $38 million, respectively.

A closer examination reveals that the majority of Bitcoin outflows originated from the Grayscale ETF, which experienced $440 million in outflows. Notably, this represents the lowest outflow in nine weeks for Grayscale.

While Grayscale’s outflows are slowing, inflows from new ETFs have also decreased, with only $126 million recorded last week compared to $254 million the previous week.

This redistribution of funds toward altcoins could have significant implications for the broader crypto market. It suggests that investors are diversifying their portfolios beyond Bitcoin, potentially signaling a shift in market dynamics where altcoins gain traction and erode Bitcoin’s dominance.

As market participants brace for a major Federal Reserve meeting later in the week, caution and anticipation prevail. There is growing anticipation regarding the meeting’s likely indication of higher interest rates in the future, prompting investors to prepare for potential repercussions across digital assets.

At the time of writing, Solana was down 4.80% over the last 24 hours to $135.22, while XRP declined by 2.20% to $0.5081 during the same period. Bitcoin also experienced a decline of 1.65% to $62,356 after hitting a weekly low of $61,928 earlier in the trading session.