Institutional Crypto Adoption Skyrockets, Solana Takes Center Stage
CoinShares, a prominent digital assets manager, unveiled a recent surge in institutional investment in cryptocurrency products, marking the eighth consecutive week of substantial growth in this sector.
In its latest report on Digital Asset Fund Flows, CoinShares highlighted the sustained trend of institutional investors diversifying their portfolios into cryptocurrencies, notably favoring investment products associated with Solana (SOL) among the various alternative coins.
The report revealed a significant inflow of $176 million into digital asset investment products over the past week. This surge continued a streak of eight weeks with consistent inflows, resulting in a cumulative year-to-date influx of $1.32 billion.
However, despite this positive trajectory, these numbers fall notably short when compared to the massive inflows of $10.7 billion and $6.6 billion observed in 2021 and 2020, respectively.
CoinShares attributed a substantial portion of the increased trading volumes in the crypto market to investors engaging with exchange-traded products (ETPs). Weekly trading volumes in ETPs averaged $3 billion, doubling this year’s average of $1.5 billion.
READ MORE: Rising Markets: Diverse Stocks Ride Rate Speculations
Notably, the share of ETPs in total crypto volumes has risen to an average of 11%, significantly surpassing the long-term historical average of 3.4%. This increase is also notably higher than the averages witnessed during the bullish market of 2020/21.
Leading the influx of funds, Bitcoin (BTC) attracted $154.7 million in investments. Solana products followed closely, drawing in $13.6 million, indicating a growing interest in this Ethereum (ETH) competitor. Ethereum itself experienced an influx of $3.3 million, while Litecoin (LTC), Cardano (ADA), and XRP products saw comparatively lower inflows, each bringing in less than a million dollars.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
