Solana (SUN) is quickly gaining the attention of institutional investors, who are increasingly demonstrating a strong interest in this cryptographic token. This trend highlights the possibility that Solana could be next in line to launch its Spot ETF, a development that could significantly impact the crypto token’s price.
Solana Investment Funds records year-to-date inflows of US$29 million
According to the latest weekly report from CoinShares report, Solana investment products currently have YTD (YTD) net inflows of $29 million. Last week, these funds recorded net inflows of 8 million dollars. Meanwhile, these Solana funds recorded net inflows of 19 million dollars this month alone.
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This development highlights Solana’s significant demand among institutional investors. It also strengthens the case for SOL as the next crypto asset to have its own Spot ETF following the approval of the Spot Ethereum ETFs.
Fund issuers are required to evaluate the popularity of other cryptographic tokens (in addition to Bitcoin and Ethereum) when deciding which Crypto ETF to apply for next. Solana is undoubtedly the favorite as it has recorded the highest number of year-to-date flows among other crypto investment funds, excluding Bitcoin and Ethereum.
The demand for Solana among these institutional investors is also evident, given the form of notable institutions like asset management firm Pantera Capital. actively bid and purchased some of the SOL tokens at a discount, which were part of the FTX bankruptcy estate.
Brian Kelly, founder of digital asset investment firm BKCM, recently foreseen that a Solana Spot ETF would likely be next in line considering Bitcoin, Ethereum and Solana are the ‘Big 3’ of this cycle. As such, it is logical that a SOL ETF would follow, given that the Bitcoin and Ethereum Spot ETFs have been approved.
Asset Manager Franklin Templeton also supported Solana’s narrative, predicting that the crypto token would soon become the third-largest crypto token by market cap, behind Bitcoin and Ethereum. About that, Bloomberg Analyst James Seyffart also weighed in on the possibility of a Solana ETF being next, stating that this fund will be in more demand than other digital assets besides Bitcoin and Ethereum.
Digital asset products record third consecutive week of inflows
Last week was good for crypto asset investment products in general. These investment products recorded net inflows for the third consecutive week, with US$1.05 billion flowing into these funds. Most of these entries went to Bitcoin investment productswhich recorded net inflows of US$1.01 billion last week.
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Meanwhile, Ethereum recorded $36 million in net inflows last week. This number represents the largest inflow Ethereum investment products have seen since March. CoinShares noted that this was likely an initial reaction to the approval of Spot Ethereum ETFs in the United States.
In addition to Solana, which had a net inflow of US$8 million, Litecoin, XRP and Chain link It was the other altcoins that saw notable flows, with $2.8 million, $400,000, and $600,000 flowing into these crypto assets, respectively.
Featured image created with Dall.E, chart from Tradingview.com