Solana Remains Institutional Investors’ Favorite, YTD Flows Ramp Up To $29 Milion
May 29 2024 - 2:00PM
NEWSBTC
Solana (SOL) is rapidly gaining the attention of institutional
investors, who are increasingly showing a strong interest in this
crypto token. This trend underscores the possibility that Solana
could be the next in line to launch its Spot ETF, a development
that could significantly impact the crypto token’s price.
Solana Investment Funds Record Year-To-Date Inflows Of $29 Million
According to CoinShares’ latest weekly report, Solana investment
products currently boast a year-to-date (YTD) net inflows of $29
million. Last week, these funds saw net inflows of $8 million.
Meanwhile, these Solana funds have recorded net inflows of $19
million this month alone. Related Reading: Market Expert Says
XRP Price Reaching $1,000 Is Inevitable, Here’s Why This
development highlights the significant demand for Solana among
institutional investors. It also strengthens the case for SOL as
the next crypto asset to have its own Spot ETF following the
approval of the Spot Ethereum ETFs. Fund issuers are bound to
weigh the popularity of other crypto tokens (besides Bitcoin and
Ethereum) when deciding which Crypto ETF to apply for next. Solana
is undoubtedly the clear favorite, as it has recorded the most YTD
flows among other crypto investment funds, excluding Bitcoin and
Ethereum. The demand for Solana among these institutional
investors is also evident, given how notable institutions like
asset management firm Pantera Capital actively bidded and purchased
some of the discounted SOL tokens, which formed part of FTX’s
bankruptcy estate. Brian Kelly, founder of digital assets
investment firm BKCM, had recently predicted that a Solana Spot ETF
was likely next in line, considering that Bitcoin, Ethereum, and
Solana are the ‘Big 3’ for this cycle. As such, it is only logical
that a SOL ETF comes next since Bitcoin and Ethereum Spot ETFs have
been approved. Asset manager Franklin Templeton also backed
the Solana narrative, predicting that the crypto token would soon
become the third-largest crypto token by market cap behind Bitcoin
and Ethereum. Meanwhile, Bloomberg analyst James Seyffart also
weighed on the possibility of a Solana ETF being next, stating that
this fund will see more demand than other digital assets besides
Bitcoin and Ethereum. Digital Asset Products Record Third
Consecutive Week Of Inflows Last week was a good one for crypto
asset investment products in general. These investment products
recorded net inflows for the third consecutive week, with $1.05
billion flowing into these funds. Most of these inflows went into
Bitcoin investment products, which recorded net inflows of $1.01
billion last week. Related Reading: Ethereum Spot ETFs: Report
Shows Grayscale Could Keep ETH Price Down With $110M Daily Outflows
Meanwhile, Ethereum recorded $36 million in net inflows last week.
This figure represents the highest inflow that Ethereum investment
products have seen since March. CoinShares noted that this was
likely an early reaction to the approval of the Spot Ethereum ETFs
in the United States. Besides Solana, which saw a net inflow
of $8 million, Litecoin, XRP, and Chainlink were the other altcoins
that recorded notable flows, with $2.8 million, $400,000, and
$600,000 flowing into these crypto assets, respectively.
Featured image created with Dall.E, chart from Tradingview.com
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