Solana Sees “Dramatic Increase” In Institutional Investment As Altcoin Exposure Grows, CoinShares Says

Solana (SOL) is witnessing a “dramatic increase in allocations” from wealth managers and hedge funds, who are also broadening their exposure to altcoins, Coinshares said.

“Investors are more optimistic for Solana,” CoinShares’ head of research James Butterfill wrote in an Apr. 24 report. The findings were based on a survey of 64 investors, with a collective $600 billion in assets under management.

Investors Favor Solana Over Ethereum

Market leaders Ethereum (ETH) and Bitcoin (BTC) are still the favorites, the survey showed. Following the approval of spot Bitcoin ETFs (exchange-traded funds) in the U.S., 41% of the investors who took part believe that BTC has the “most compelling growth outlook.”

Ethereum took the second spot, but “investor appetite has waned since January,” Butterfill said.

Investors have a more positive outlook for Ethereum’s competitor, Solana, he added.

Nearly 15% of the surveyed investors revealed that they invested in SOL. This was a significant increase since CoinShares’ January survey, which showed that none of the respondents had exposure in the altcoin.

SOL was also ranked third in terms of the “most compelling growth outlook,” which was also an increase from the 10% vote it received in CoinShares’ previous survey.

According to a report from CoinShares, Institutional investors appear to be “broadening their exposure to altcoins” including Solana, which has seen a “dramatic increase in allocations” from wealth managers and hedge funds.

— LondonCryptoClub (@LDNCryptoClub) April 26, 2024

Investors’ portfolio allocation in digital assets has also risen from 1.3% in January to 3%. This is “the highest weighting since the survey began in 2021,” Butterfill noted in the report

“Unsurprisingly, some of the largest contributors to this [increased exposure] were allocation from institutional investors who finally had the ability to gain exposure to Bitcoin via the U.S. ETFs,” he wrote.

SOL Ecosystem Loses Some Market Value, But Maintains $209B Capitalization

The market cap for the Solana ecosystem dropped slightly in the past 24 hours, but still stood at over $209 billion as of 3:00 a.m. EST. SOL itself experienced a more than 2% decline in value over the past 24 hours. 

Solana meme coins performed well during this period. Dogwifhat (WIF) saw its price climb over 1% throughout the past day of trading.

Meme coin presales on Solana are also red hot following the introduction of so-called ”send SOL” ICOs. These require no timer, stages, hard cap, or even a whitepaper. 

Pioneered by meme coins including $SLERF, $PUMP, $PUNDU, and $BOME, the latest, hottest example is Slothana (SLOTH), which has raised more than $15 million in a month-long ICO that will end on Monday, April 29. 

Related Articles:

Smog (SMOG) – Meme Coin With Rewards

• Airdrop Season One Live Now
• Earn XP To Qualify For A Share Of $1 Million
• Featured On Cointelegraph
• Staking Rewards – 42% APY
• 10% OTC Discount – smogtoken.com