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 1.43% Bitcoin / USD BTCUSD $ 48,002.74
$686.441.43% Volume 28.17 b Change $686.44 Open $48,002.74 Circulating 18.82 m Market Cap 903.4 b 1 d Stablecoins Come Under Scrutiny As Regulators Rev Up Crypto Clampdown Efforts 1 d Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time 1 d Visa’s Head of Crypto Inquires About Solana (SOL), PayPal Officially Enables Crypto Trading for UK Customers ETH 0.21% Ethereum / USD ETHUSD $ 3,407.54
$7.160.21% Volume 15.85 b Change $7.16 Open $3,407.54 Circulating 117.58 m Market Cap 400.66 b 1 d Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time 1 d Visa’s Head of Crypto Inquires About Solana (SOL), PayPal Officially Enables Crypto Trading for UK Customers 1 d Trezor Adds EIP-1559 Support to its Model T Wallet, $1 Billion Worth of ETH Burned
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 0.36% Cardano / USD ADAUSD $ 2.36
$0.010.36% Volume 2.13 b Change $0.01 Open $2.36 Circulating 32.03 b Market Cap 75.54 b 1 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 4 d Polygon to Integrate EY’s Blockchain Solutions Into Its Ecosystem 4 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows XRP 0.19% XRP / USD XRPUSD $ 1.07
$0.000.19% Volume 2.32 b Change $0.00 Open $1.07 Circulating 46.62 b Market Cap 49.99 b 4 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows 5 d More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits 5 d Southeast Asia’s Largest Bank (DBS) Sees Increasing Crypto Demand from Corporate Investors and Wealthy Family Funds DOT 4.71% Polkadot / USD DOTUSD $ 34.90
$1.644.71% Volume 1.91 b Change $1.64 Open $34.90 Circulating 987.58 m Market Cap 34.47 b 1 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 4 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows 5 d More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits
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.