Solana Sees 7,600% Surge In Institutional Inflows, Here’s Why

As a seasoned crypto investor with a knack for spotting trends and a penchant for taking calculated risks, the recent surge in institutional inflows towards Solana has piqued my interest. After weathering the storm of bearish market sentiments, I’ve learned to read between the lines and this 7,600% increase in inflows is a beacon of hope amidst the sea of red.


Although the price movement of Solana seems to be declining, there’s a glimmer of optimism as institutional investors appear to be defying this trend. This positive outlook for Solana is supported by a recent influx of investments in digital assets, where Solana has emerged as a leading choice.

As a crypto investor, I observed a significant withdrawal of funds from digital asset investment products last week, particularly with Bitcoin-focused products failing to garner new investments. Notably, the data from CoinShares’ weekly report on digital asset fund flows highlighted an overall outflow of $305 million last week, a stark contrast to the $533 million inflow in the previous week. However, amidst this downward trend, Solana was the exception, experiencing a remarkable 7,500% increase in investor inflows.

SOL Sees 7,600% Surge In Inflows

As a researcher delving into the digital asset investment sphere, I’ve noticed that August was marked by substantial volatility. Last week’s collective withdrawal from the institutional niche underscores the hurdles numerous cryptocurrencies are grappling with. The latest CoinShares report suggests that Bitcoin has been a significant contributor to these outflows, as its related products recorded an outflow of approximately $319 million last week.

In contrast to Bitcoin, the performance of other digital currencies known as altcoins showed mixed results during the previous week. Ethereum, the most significant altcoin, followed Bitcoin’s trend by experiencing an outflow of approximately $5.7 million, given that the trading volume for Spot ETH ETFs was relatively low last week. Nevertheless, nearly all other altcoins saw institutional investments flow in last week, indicating a potential increase in investor confidence.

Significantly, Solana-linked products dominated the scene with a massive influx of approximately $7.6 million, a significant leap from the mere $0.1 million it recorded in the preceding week. This represents a staggering 7,500% increase in inflows for SOL. This upward trend in Solana is particularly noteworthy as it signifies a shift from the growing negative sentiment that emerged around mid-August. Interestingly, just fortnight ago, Solana saw its largest outflow ever to the tune of $39 million, making the recent inflows even more substantial.

Solana ETF Changing The Narrative

A significant portion of the change in public perception about Solana can be linked to whispers about the upcoming launch of U.S. Spot Solana ETFs. Following the successful debut of Spot Bitcoin and Ethereum ETFs, the crypto sector has been eagerly anticipating a Spot ETF for the next promising altcoin, and Solana has emerged as a contender. Interestingly, Spot Solana ETFs have already been launched in Brazil and other South American markets. The latest approval was granted to Hashdex, a Brazilian asset manager managing over $962 million in assets.

As a researcher exploring the realm of financial technologies, I’ve noticed that though U.S. applications for Spot Solana ETFs have yet to garner significant momentum, there’s a palpable sense of anticipation among market participants. One such voice expressing optimism is the DeFi commentator, @CryptoNobler.

NASDAQ just secured approval for the $SOL ETF!
SEC no longer classifies $SOL as security, and BlackRock is already applying.
Solana bull run is about to ignite and many alts will skyrocket 1000x
— 0xNobler (@CryptoNobler) August 28, 2024

Currently, Solana is being exchanged at approximately $134. Notably, its cryptocurrency value had been decreasing for most of the previous week until it rebounded from a support level at around $127 on September 2. In the last day, Solana has experienced a rise of about 4.52%.

Solana Sees 7,600% Surge In Institutional Inflows, Here’s Why

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2024-09-03 18:34