Institutional Investors Bet on Solana as $SOL Investment Products Record 9th Week of Inflows
Cryptocurrency investment products focusing on the smart contract platform Solana ($SOL), Ethereum ($ETH) rival whose performance was negatively affected by the collapse of FTX, have been seeing significant inflows so far this year, and recently recorded its ninth consecutive week of inflows.
According to CoinShares’ latest Digital Asset Fund Flows weekly report, in a week in which cryptocurrency investment products saw outflows totaling $11.2 million and in which trading volumes surge to $2.8 billion for the week – a figure 90% above the average for this year – major altcoins saw outflows.
Per the firm, Polygon ($MATIC) and Ethereum saw $8.6 million and $3.2 million of outflows respectively, while Solana saw $700,000 in inflows to bring its total inflows this year to $26 million, suggesting it’s “the most loved altcoin amongst investors at present.”
Bitcoin, according to the report, saw inflows of $3.8 million over the past week, while products shorting BTC saw their nineteenth consecutive week of outflows totaling $3.3 million, with their assets under management having fallen 48% from the top seen this year.
Last month, Solana’s price rose to the point it managed to briefly overtake the meme-inspired cryptocurrency Dogecoin ($DOGE) as the eighth largest digital asset by market capitalization. Analysts have nevertheless been bullish on the cryptocurrency space, with specific price predictions being made for SOL.
As reported Benjamin Cowen, a popular cryptocurrency influencer with a following of over 780,000 people on the Google-owned video-sharing platform YouTube, has recently shared insight into the trajectory of Solana, saying it could make a significant turnaround in a way similar to what Cardano ($ADA) did during the previous bear market.
Solana’s price was negatively impacted by the collapse of FTX, as the exchange’s founder Sam Bankman-Fried, who is accused of wire fraud, securities fraud, conspiracy and campaign finance violations, was a major supporter and investor of Solana.
Featured image via Unsplash.
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