Solana (SOL) is rapidly gaining the eye of institutional investors, who’re increasingly showing a robust interest on this crypto token. This trend underscores the chance that Solana might be the subsequent in line to launch its Spot ETF, a development that would significantly impact the crypto token’s price.
Solana Investment Funds Record 12 months-To-Date Inflows Of $29 Million
In line with CoinShares’ latest weekly report, Solana investment products currently boast a year-to-date (YTD) net inflows of $29 million. Last week, these funds saw net inflows of $8 million. Meanwhile, these Solana funds have recorded net inflows of $19 million this month alone.
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This development highlights the numerous demand for Solana amongst institutional investors. It also strengthens the case for SOL as the subsequent crypto asset to have its own Spot ETF following the approval of the Spot Ethereum ETFs.
Fund issuers are sure to weigh the recognition of other crypto tokens (besides Bitcoin and Ethereum) when deciding which Crypto ETF to use for next. Solana is undoubtedly the clear favorite, because it has recorded probably the most YTD flows amongst other crypto investment funds, excluding Bitcoin and Ethereum.
The demand for Solana amongst these institutional investors can be evident, given how notable institutions like asset management firm Pantera Capital actively bidded and purchased a few of the discounted SOL tokens, which formed a part of FTX’s bankruptcy estate.
Brian Kelly, founding father of digital assets investment firm BKCM, had recently predicted that a Solana Spot ETF was likely next in line, considering that Bitcoin, Ethereum, and Solana are the ‘Big 3’ for this cycle. As such, it is simply logical that a SOL ETF comes next since Bitcoin and Ethereum Spot ETFs have been approved.
Asset manager Franklin Templeton also backed the Solana narrative, predicting that the crypto token would soon develop into the third-largest crypto token by market cap behind Bitcoin and Ethereum. Meanwhile, Bloomberg analyst James Seyffart also weighed on the potential for a Solana ETF being next, stating that this fund will see more demand than other digital assets besides Bitcoin and Ethereum.
Digital Asset Products Record Third Consecutive Week Of Inflows
Last week was a great one for crypto asset investment products on the whole. These investment products recorded net inflows for the third consecutive week, with $1.05 billion flowing into these funds. Most of those inflows went into Bitcoin investment products, which recorded net inflows of $1.01 billion last week.
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Meanwhile, Ethereum recorded $36 million in net inflows last week. This figure represents the best inflow that Ethereum investment products have seen since March. CoinShares noted that this was likely an early response to the approval of the Spot Ethereum ETFs in the USA.
Besides Solana, which saw a net inflow of $8 million, Litecoin, XRP, and Chainlink were the opposite altcoins that recorded notable flows, with $2.8 million, $400,000, and $600,000 flowing into these crypto assets, respectively.
SOL price recovers amid institutional interest | Source: SOLUSDT On Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com