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.
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 -1.54% Bitcoin / USD BTCUSD $ 21,021.97
-$323.74-1.54% Volume 22.52 b Change -$323.74 Open $21,021.97 Circulating 19.08 m Market Cap 401.08 b 5 mon SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 5 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 5 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum ETH -0.03% Ethereum / USD ETHUSD $ 1,223.86
-$0.37-0.03% Volume 13.84 b Change -$0.37 Open $1,223.86 Circulating 121.33 m Market Cap 148.49 b 5 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 5 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 5 mon 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 -2.50% Cardano / USD ADAUSD $ 0.49
-$0.01-2.50% Volume 751.08 m Change -$0.01 Open $0.49 Circulating 33.93 b Market Cap 16.66 b 6 mon Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 6 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 6 mon Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report XRP -3.83% XRP / USD XRPUSD $ 0.35
-$0.01-3.83% Volume 1.04 b Change -$0.01 Open $0.35 Circulating 48.34 b Market Cap 16.87 b 6 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 6 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 6 mon Ledger Announces Integration with FTX and Coinbase, Launching Crypto Life Debit Card DOT -3.13% Polkadot / USD DOTUSD $ 7.86
-$0.25-3.13% Volume 412.83 m Change -$0.25 Open $7.86 Circulating 987.58 m Market Cap 7.76 b 6 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 6 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 6 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.