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Solana remains the favorite of institutional investors, year-to-date flows rise to $29 million — TradingView News
Solana (SOL) is rapidly gaining the attention of institutional investors, who are increasingly showing strong interest in this crypto token. This trend highlights the possibility that Solana could be next in line to launch its Spot ETF, a development that could have a significant impact on the price of the crypto token.
Solana investment funds have recorded year-to-date inflows of $29 million
According to CoinShares’ latest weekly report, Solana Investment Products currently boasts a year-to-date (YTD) net inflow of $29 million. Last week, these funds saw net inflows of $8 million. Meanwhile, these Solana funds have seen net inflows of $19 million this month alone.
This development highlights the significant demand for Solana among institutional investors. It also strengthens the case that SOL is the next crypto asset to have its own Spot ETF after the approval of Ethereum Spot ETFs.
Fund issuers are required to evaluate the popularity of other crypto tokens (beyond Bitcoin and Ethereum) when deciding which crypto ETF to apply for next. Solana is undoubtedly the favorite, as it has seen the most year-to-date flows among other cryptocurrency investment funds, excluding Bitcoin and Ethereum.
The demand for Solana among these institutional investors is also evident, as major institutions such as asset management firm Pantera Capital have been actively bidding for and purchasing some of the discounted SOL tokens, which were part of FTX’s bankruptcy estate.
Brian Kelly, founder of digital asset investment firm BKCM, recently predicted that a Solana Spot ETF would likely be next in line, considering Bitcoin, Ethereum and Solana are the “Big 3” for this cycle. Therefore, it makes sense that a SOL ETF comes next as Bitcoin and Ethereum Spot ETFs have been approved.
Asset manager Franklin Templeton also supported Solana’s narrative, predicting that the crypto token would soon become the third largest crypto token by market capitalization behind Bitcoin and Ethereum. Meanwhile, Bloomberg analyst James Seyffart also weighed in on the possibility of the Solana ETF being next, saying this fund will see greater demand than other digital assets beyond Bitcoin and Ethereum.
Digital asset products see inflows for the third consecutive week
Last week was a positive one for cryptocurrency investment products in general. These investment products recorded net inflows for the third consecutive week, with $1.05 billion inflows into these funds. The majority of these inflows went into Bitcoin investment products, which saw net inflows of $1.01 billion last week.
Meanwhile, Ethereum recorded net inflows of $36 million 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 Spot Ethereum ETFs in the United States.
Besides Solana, which recorded 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 respectively flowing into these crypto assets .