Institutional investors bet big on Solana while BTC outflows persist

Institutional investors bet big on Solana while BTC outflows persist

Bitcoin Markets
August 24, 2021 by J.D. Smith
179
Institutional investors are loading up on Solana (SOL), with one-third of inflows to crypto investment products being invested in instruments tracking Solana this past week. According to CoinShares’ Aug. 23 Digital Asset Fund Flows Weekly report, $7.1 million flowed into Solana investment products between Aug. 15 and Aug. 20. While the price of SOL gained
ef7f3560-3900-414e-811b-6ef152617761

Institutional investors are loading up on Solana (SOL), with one-third of inflows to crypto investment products being invested in instruments tracking Solana this past week.

According to CoinShares’ Aug. 23 Digital Asset Fund Flows Weekly report, $7.1 million flowed into Solana investment products between Aug. 15 and Aug. 20.

While the price of SOL gained a megre 1.4% on the spot markets over the same period, SOL has gained 110% from $35.58 since the start of August to trade for $75 as of this writing.

CoinShares’ report notes that institutional crypto investment products bucked a six-week trend of outflows, with roughly $21 million flowing into the sector this past week.

Products tracking Cardano (ADA) were the second-most popular for the week with inflows totaling $6.4 million. Institutions also poured $3.2 million into products tracking Ethereum (ETH), $1.8 million into Litecoin (LTC), and $1.1 million into Polkadot (DOT).

Flows by Asset: CoinShares

Institutional BTC products saw outflows of $2.8 million for the week — marking the seventh consecutive week of outflows for Bitcoin. BTC shed 6% over the same period.

Related: Pro traders are mildly skeptical about Bitcoin’s recent return to $50K

The report noted that the value of assets under management (AUM) by crypto investment product issuers increased to $57.3 billion as the markets rallied this week — its largest level since peaking at around $66 billion during the heights of the 2021 bull market in mid-May.

Leading institutional asset manager Grayscale represents three-quarters of the sector’s AUM with $42.6 billion.

Flows across asset providers were mixed however, with the Coinshares XBT, ETC Issuance funds shedding $9.5 million and $9.4 million, while 21shares, CoinShares Physical and 3iQ posted inflows of $21.8 million, $14.7 million and $10.8 million respectively.