Institutional Investment Soars in Crypto Markets: Solana Takes the Lead Amid Bitcoin ETF Anticipation, Says CoinShares Report

Institutional Preference for Solana

Digital assets manager CoinShares has revealed that Solana (SOL), a prominent rival of Ethereum (ETH), is currently a top choice among institutional investors. This trend has emerged in the midst of fervent anticipation surrounding the launch of a Bitcoin (BTC) exchange-traded fund (ETF) in the crypto market.

In CoinShares’ latest report on Digital Asset Fund Flows, it is noted that institutional investors have directed more capital into Solana than any other non-BTC digital asset over the past week and year.

“Solana witnessed a substantial influx of US$15.5 million last week, bringing the year-to-date inflows to US$74 million, which accounts for 47% of Assets Under Management (AuM). This performance establishes it as the most popular altcoin of the year so far,”

Overall Market Trends

The digital assets market experienced its fourth consecutive week of institutional inflows. According to CoinShares, this trend may be attributed to the growing anticipation surrounding the approval of a spot Bitcoin ETF in the United States.

“Investment products related to digital assets witnessed inflows for the fourth week in a row, amounting to US$66 million. This has led to a significant rise in Total AuM, which now stands at US$33 billion.”

While the recent inflows can be linked to the excitement over the imminent launch of a spot Bitcoin ETF in the US, they remain relatively modest when compared to the announcements made in June. This suggests a more cautious approach from investors this time.

Specific Asset Flows

  • BTC institutional investment products received over $55 million in inflows last week.
  • Short BTC products attracted $1.6 million in investments.
  • Altcoins like Binance Coin (BNB) and Cardano (ADA) experienced minor inflows of $0.2 million and $0.1 million, respectively.
  • However, Ethereum (ETH) products witnessed outflows amounting to $7.4 million.

“Ongoing concerns regarding Ethereum have resulted in continuous outflows of US$7.4 million, making it the only altcoin to experience negative flows last week.”

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