Solana sees a 275% Week-Over-Week Rise in Investment, SOL Attracts Most Institutional Investors

Coinshares has released their Tuesday’s issue of “Digital Asset Fund Flows Weekly”. It pointed out that last week (September 6-10, 2021), Solana (SOL) investment products witnessed an inflow of US$49.4 million. The total inflows for crypto investment products last week were US$57 million. This means, last week, 86.6% of the total crypto investment flocked to SOL. With the enormous inflow of investment in Solana products, the price of SOL increased by 36% during the same time last week.

The “Digital Asset Fund Flows Weekly” report concluded that:

“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 4th consecutive week, digital asset products have seen inflows. The most important aspect here is that the demand for altcoins significantly outweighed the appetite for Bitcoin products. BTC products saw an investment inflow of just US$200,000.

Institutional investors reportedly offloaded US$6.3 million worth of Ethereum (ETH) as the price of the underlying asset dropped by -10% during the week. Compared to last week, Cardano saw a -46% drop in institutional inflows. This happened despite the fact that the Cardano network introduced smart contracts after the successful completion of its Alonzo hard fork.

Other crypto products that witnessed a significantly high inflow of investment are:

  • Multi-asset products: US$3.2 million
  • Ripple XRP: US$3.1 million
  • Polkadot DOT: US$1.7 million
  • Bitcoin Cash BCH: US$600,000

As per the estimates of Coinshares, currently, the institutional asset managers represent US$56.3 billion of total assets under management (AUM). With the broader cryptocurrency market experiencing a pullback across the board, it means there is a -9% decrease in comparison to the week before.

However, the inflows were not uniform between different asset managers:

  • CoinShares XBT fund has shed US$24.7 million.
  • Purpose fund has shed US$45.5 million.
  • 21Shares saw an inflow of US$75 million.
  • ETC Group saw an inflow of US$13 million.
  • CoinShares saw an inflow of US$6.1 million.

The Grayscale institutional manager remained the most dominant investor with US$41.8 billion, which represented 74% of the total AUM of the sectors. On Monday, a partnership was announced by Grayscale with iCapital Network, an alternative asset fintech provider. This deal will enable advisors of iCapital to offer their high-net-worth clients access to Grayscales’ digital asset services through a diversified market-cap-weighted investment strategy.

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