IMPORTANT POINTS:
- Solana consolidates itself as the preferred altcoin of institutional investors, accumulating investments of 74 million in the year.
- Anticipation for the approval of a Bitcoin ETF in the US drives positive flows for the fourth consecutive week in the crypto market.
- Ethereum faces outflows of 7.4 million due to continued concerns, being the only altcoin with losses on the week.
As the fervor for Bitcoin (BTC) ETFs shakes the crypto market, CoinShares, a renowned digital asset manager, points to Ethereum (ETH) rival Solana (SOL) as the main draw for the institutional sector.
Solana: The Altcoin of the Year
CoinShares’ recent Digital Asset Fund Flows report reveals a clear trend: institutional investors have funneled more funds into Solana than any other non-BTC digital asset, both in the last week and throughout the year.
“With additional revenue of US$15.5 million in the past week alone, Solana has accumulated investments worth US$74 million so far this year, representing 47% of total assets under management (AuM). This boom positions it as the most sought-after altcoin of this year.”
Anticipation for Bitcoin ETF Intensifies
The excitement surrounding the possible approval of a Bitcoin Cash ETF in the US could be a major catalyst for the current market momentum. CoinShares sees a fourth consecutive week of positive flows in the digital asset sector.
“With revenue reaching US$66 million over the past week, total assets under management (AuM) has now reached US$33 billion. Although these recent flows could be influenced by Bitcoin ETF expectations, the figure is modest compared to June figures, indicating a more conservative attitude from investors.”
On the Bitcoin front, institutional investment products recorded inflows worth over 55 million over the past week. In parallel, BTC short products attracted 1.6 million.
Flows in Altcoins: Winners and Losers
Even though Binance Coin (BNB) and Cardano (ADA) saw modest revenues, with 0.2 million and 0.1 million respectively, Ethereum (ETH) did not suffer the same luck.
“Persistent concerns around Ethereum led to net outflows of US$7.4 million, making it the only altcoin to post losses last week.”
