Several institutional traders have started crowding around Solana since the demand for BTC and ETH exposure has gone down. The investment products of this token currency represent around 86.6% of the inflows over the total week to crypto investment products the week before.
Solana Has Stepped Up With Ethereum Flattening
According to the issue by CoinShares on Tuesday, the investment products of the cryptocurrency saw inflows of around $49.4 million between the 6th of September and Friday. The combined total inflows for the crypto investment products equated to around $57 million for the current week, which has resulted in the currency seeing an increase of 275% week-over-week to represent a total inflow of 86.6%.
The surging inflows to the products of Solana coincided with the SOL price gaining around 36% in the same period. The report concluded by stating that the combination of inflows and price appreciation now brings with itself the assets of the cryptocurrency under the management of $97 million, which is the 5th largest amongst all investment products. Several digital asset products have already seen inflows for the fourth consecutive week, where the demand for altcoin outweighs the BTC products appetite- seeing the minimal inflows of $200,000.
The inflows of Solana have also been offset by several institutional investors that have offloaded around $6.3 million worth of Ethereum exposure as the price of the underlying asset went down by 10% over the last week. Despite the anticipated smart contracts introduction of Cardano on Monday, the institutional flows into the tracking products of Cardano saw a decrease of 46% when compared to the week before.
According to the estimates put forward by Coinshares, most of the institutional asset managers of Solana are currently representative of a total AUM of around $56.3 billion- which marks a decrease of 9% from the week before.