Solana Becomes Institutional Favorite as Crypto Market Sees Inflows
Digital assets manager CoinShares reports that Solana (SOL), a rival to Ethereum (ETH), is gaining popularity among institutional investors. According to CoinShares’ latest report on Digital Asset Fund Flows, Solana has received more investment than any other non-Bitcoin digital asset over the past week and year. Inflows into Solana reached $15.5 million last week, bringing the year-to-date total to $74 million, making it the most popular altcoin this year so far.
The overall trend in the digital assets market shows four consecutive weeks of institutional inflows. This momentum may be driven by growing anticipation of the approval of a spot Bitcoin ETF in the United States. Digital asset investment products saw a total of $66 million in inflows, with total assets under management reaching $33 billion.
Bitcoin Dominates Institutional Investments, Ethereum Sees Outflows
Bitcoin institutional investment products attracted over $55 million in inflows last week, while short Bitcoin products saw $1.6 million in inflows. Altcoins Binance Coin (BNB) and Cardano (ADA) received minor inflows of $0.2 million and $0.1 million respectively. However, Ethereum products experienced outflows of $7.4 million due to ongoing concerns.
Hot Take: Solana Emerges as Top Choice Amidst Institutional Inflows
Solana’s rise as an institutional favorite reflects growing confidence in its potential as a competitor to Ethereum. With significant investments pouring into the crypto market, institutions are diversifying their portfolios beyond Bitcoin and exploring promising altcoins like Solana. As excitement builds around the potential approval of a spot Bitcoin ETF in the US, institutions are positioning themselves strategically to capitalize on the market’s growth. While Ethereum faces outflows due to lingering concerns, Solana’s performance highlights its appeal and potential for further growth. As the crypto market continues to evolve, it will be interesting to see how other altcoins fare in attracting institutional investments.
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