Solana receives a surge of institutional traders as demand for ETH and BTC flattens
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.
