Solana has been one of the best-performing coins in recent weeks, and institutional investors have taken an interest in the cryptocurrency.
Institutional investors flock to Solana
A report by CoinShares earlier today revealed that institutional investors are moving their funds to Solana following the cryptocurrency’s excellent performance in recent weeks. The interest comes as institutions reduce their input in BTC and ETH
Per the report, Solana (SOL) investment products recorded an inflow of $49.4 million between September 6 and September 10. This is huge considering the fact that the total inflows for crypto investment products equated to $57 million for the week. Solana’s institutional investment grew by 275% week-over-week, and it represented 86.6% of the total inflow.
The report said, “During last week’s price falls, Solana’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34%, having risen 24% week-on-week. This was reflected with inflows, dwarfing any other digital asset, totaling almostUS$50m. A combination of price appreciation and inflows now brings Solana’s assets under management (AuM) to US$97m, the 5th largest of all investment products.”
Bitcoin and Ether inflow remains flat
Bitcoin and Ether remain the two leading cryptocurrencies. However, the institutional investment into their products was poor last week. According to CoinShares, Bitcoin inflow remained flat for the week, with just $200,000 entering the market. Meanwhile, Ethereum saw minor outflows of $6.3m during that period.
Institutional investors continue to diversify their investment in cryptocurrencies. The report ended by saying, “The trend of diversification remains intact amongst investors, with inflows into Cardano, multi-asset, XRP and Polkadot totaling US$3.5m, US$3.2m, US$3.1 and US$1.7m, respectively.”