As demand for Ether (ETH) and Bitcoin (BTC) exposure has levelled, institutional traders have flocked to Solana (SOL), accounting for a stunning 86.6% of total weekly crypto investment product inflows last week.
Solana (SOL) investment products had inflows of $49.4 million between Sept. 6 and Sept. 10, according to the Sept. 14 edition of CoinShares’ Digital Asset Fund Flows Weekly.
The overall inflows for crypto investment products totalled $57 million for the week, with SOL accounting for 86.6 percent of total inflows, up 275 week over week.
The surge in demand for Solana products coincided with a 36 percent increase in the price of SOL over the same time period. The report came to the following conclusion:
“A combination of price appreciation and inflows now brings Solana’s assets under management to $97 million, the 5th largest of all investment products.”
For the fourth week in a row, digital asset products have witnessed inflows, with demand for cryptocurrencies greatly outweighing the desire for BTC products, which saw only $200,000 in inflows.
Institutional investors sold $6.3 million worth of Ether exposure as the underlying asset’s price fell 10% over the week, slightly offsetting the inflows.
Despite Cardano’s (ADA) much-anticipated debut of smart contracts on September 13, institutional flows into ADA-tracking products fell by 46% from the previous week.
Ripple (XRP), Polkadot (DOT), and Bitcoin Cash (BCH) all experienced inflows of $3.2 million, $3.1 million, $1.7 million, and $600,000, respectively, in multi-asset products.
Institutional asset managers now have a combined AUM of $56.3 billion, according to CoinShares estimates, down 9% from the week before as the broader crypto markets witnessed a fall across the board.
Asset managers had uneven flows, with CoinShares XBT and Purpose funds losing $24.7 million and $45.5 million, respectively, while 21Shares, ETC Group, and CoinShares received $75 million, $13 million, and $6.1 million inflows.
Grayscale, the top institutional manager, maintained its dominance, accounting for 74 percent of the sector’s AUM ($41.8 billion).
On September 13, Grayscale announced a cooperation with iCapital Network, a supplier of alternative asset fintech. The agreement would allow iCapital’s advisors to provide Grayscales’ digital asset services to the firm’s high-net-worth clients through a diversified market-cap-weighted investment strategy.