Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows

21Shares, which launched the world’s first Solana ETP in late June, also recorded the largest inflows of any provider. Last week, Bitcoin saw paltry inflows while Ethereum had minor outflows, and the altcoin diversification trend continued.


Digital asset investment products have posted fourth straight weeks of inflows.

Interestingly, Solana’s inflows dwarfed any other digital asset by accounting for $49.4 million of the total $57 million inflows for the week ending September 10 and simply remaining a “favourite amongst investors.”

Last week, during the price crash, SOL’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34%, having risen 24% week-on-week. Since then, SOL has topped at about $214 all-time high from five days back.

As of writing, the $49.74 billion market cap cryptocurrency has been trading at $167.63, down 22.2% from ATH.

This price appreciation and inflows brought Solana’s asset under management (AUM) to $97 million — making it the 5th largest of all investment products after Bitcoin ($37.2 bln), Ethereum (nearly $15 bln), Multi-Asset (almost $3.36 bln), and Binance ($437 mln).

Crypto derivatives exchange FTX CEO and founder Sam Bankman-Fried also said in an interview that the Ethereum competitor has seen more interest from institutional players.

He pointed to interest in NFTs, DeFi, and the launch of the market-data feed Pyth Network fueling the popularity of Solana.

“There's been a lot more interest institutionally,” Bankman-Fried said. “Solana is one of the only blockchains that has a compelling long-term road map” that will be eventually able to support industrial uses of crypto, he added.

A couple of months back, Solana Labs raised $314.2 million from investors, including venture capital firm Andreessen Horowitz and Bankman-Fried's Alameda Research.

image1

Meanwhile, Bitcoin was mostly flat for the week with a paltry $0.2 million of inflows, while Ethereum saw some minor inflows of $6.3 million. BTC -8.41% Bitcoin / USD BTCUSD $ 36,570.20
-$3,075.55-8.41%
Volume 42.82 b Change -$3,075.55 Open $36,570.20 Circulating 18.94 m Market Cap 692.51 b
3 w SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 3 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 3 w Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum
ETH -10.63% Ethereum / USD ETHUSD $ 2,609.27
-$277.37-10.63%
Volume 27.29 b Change -$277.37 Open $2,609.27 Circulating 119.26 m Market Cap 311.18 b
3 w Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 3 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 3 w The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022

Volumes in investment products have also risen 143% since their lows at $3.8 bln in early July. “This rise in volumes and inflows indicates investors are now beginning to be more active following the seasonal summer doldrums,” noted CoinShares in its latest weekly digital asset fund flows report.

Additionally, the trend of diversification continued amongst investors with other altcoins also recording inflows namely Cardano, multi-asset, XRP, and Polkadot totaling $3.5 mln, $3.2 mln, $3.1 mln, and $1.7 mln respectively. ADA -6.88% Cardano / USD ADAUSD $ 1.14
-$0.08-6.88%
Volume 2.88 b Change -$0.08 Open $1.14 Circulating 33.54 b Market Cap 38.27 b
3 w Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 1 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report
XRP -8.06% XRP / USD XRPUSD $ 0.65
-$0.05-8.06%
Volume 3.19 b Change -$0.05 Open $0.65 Circulating 47.74 b Market Cap 30.93 b
1 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Ledger Announces Integration with FTX and Coinbase, Launching Crypto Life Debit Card
DOT -11.70% Polkadot / USD DOTUSD $ 19.91
-$2.33-11.70%
Volume 2.23 b Change -$2.33 Open $19.91 Circulating 987.58 m Market Cap 19.66 b
1 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows

When it comes to the providers, Grayscale has seen zero flows in the last week, and in this month, the same as Bitwise, with its YTD flows at just over $41.8 bln still in the lead by a big margin.

Purpose, which was the first one to launch a Bitcoin ETF in Canada and also an Ether ETF and CoinShares XBT were the only ones that recorded outflows of $45.5 mln and $24.7 mln, respectively.

21Shares, previously Amun, recorded the largest inflows of $75 mln for the week. Given the fact that in late June, the Switzerland-based investment product provider launched the world’s first Solana exchange-traded product (ETP) under the ticker “ASOL,” it makes sense that it would see the most inflows.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide