Institutional traders have flocked to Solana (SOL) as demand for Ethereum (ETH) and Bitcoin (BTC) has leveled off. SOL investment products accounted for a whopping 86.6% of total weekly cash inflow into crypto investment products last week.
Data from Coinshares shows that Solana (SOL) investment products saw a cash inflow of $49.4 million between September 6 and 10. Combined total inflows for crypto investment products equaled $57 million for the week, with SOL taking up 86.6% of total inflows. Institutional money inflow to SOL increased by about 250% in one week.
The rising cash inflow into Solana products was accompanied by a 36% price increase in SOL over the same period. Coinshares concluded the following in their weekly report:
“A combination of price appreciation and cash inflows now brings Solana's assets under management to $97 million, the 5th largest of all crypto investment products.”
Cryptocurrencies have now seen net inflows for the fourth week in a row, with the demand for altcoins significantly outpacing the demand for BTC products, which saw a tiny inflow of $200,000.
The influx was also partially offset by institutional investors who had to sell $6.3 million worth of Ethereum as the price of the underlying fell more than 10% over the course of the week.
Despite the anticipation of Cardano (ADA)'s smart contracts on Monday, September 13, institutional flows to ADA tracking products saw a 46% drop in inflows compared to the week before. Also, ADA fell about $0.40 from $2.70 to $2.30 on the day of the launch.
Other altcoin-tracking products such as Ripple
(DOT) and Bitcoin Cash (BCH) also saw inflows of $3.1 million, $1.7 million and $600,000, respectively.
According to CoinShares estimates, institutional asset managers currently own $56.3 billion in total crypto - down 9% from the previous week, not because of the withdrawal of money, but because the crypto market saw a sharp correction over the past week. Logically, the value of all assets also fell sharply as a result. Flows were unevenly distributed among asset managers, with CoinShares XBT and Purpose funds taking out $24.7 million and $45.5 million respectively, while 21Shares, ETC Group and CoinShares saw inflows of $75 million, $13 million and $6.1 million, respectively.
Grayscale, one of the most reputable crypto asset managers, continued to dominate, representing 74% of the industries' AUM (Assets Under Management) at $41.8 billion. Grayscale's three largest holdings are Bitcoin
(ETH) and Cardano
(ADA), respectively, but the investment giant now also owns Solana