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- The crypto market has continued to enjoy a steady stream of investment from institutional investment led by the European market.
- Ethereum rival Solana has emerged as a favorite for institutional investors in 2023 according to CoinShares.
According to the latest report from a European leading alternative asset manager specializing in digital assets, CoinShares, institutional investors continue to take advantage of the bearish atmosphere with big inflows into the crypto market. According to the latest report which highlights institutional inflows in the crypto market by institutional investors, a total of $78 million made its way last week. As noted by the firm, this marks the second week of positive inflows in succession.
The report notes;
Digital asset investment products saw inflows for the second week totaling $78 million, while trading volumes for ETPs (exchange-traded products) also rose by 37% to $1.13 billion for the week. We also saw a rise in Bitcoin volumes of 16% on trusted exchanges.
These figures are the highest recorded in months, suggesting institutional investors are optimistic and bullish about the coming months. Looking at the breakdown of the inflows, Bitcoin remains the top pick with inflows amounting to $43 million. The second pick is somewhat surprising for many, as Solana amassed nearly $24 million in inflows last week. Ethereum and Cardano (ADA) saw inflows of $10.2 million and $0.2 million respectively.
With nearly $24 million in weekly inflows, the report notes that this is its largest week of inflows since March 2022. It is clear that the altcoin has become a favorite choice for institutional investors. The altcoin recently marked a net positive inflows this year, registering a significant $5 million.
Read More: Bullish on Solana: The Altcoin of the Year Registers Remarkable Inflows
Another notable highlight is that most of the inflows came from Europe, while North American markets saw significantly lower inflows. The report notes;
Regionally, the divide continues, with 90% of inflows from Europe, while the US and Canada saw just $9 million inflows combined, suggesting a continued divergence in sentiment.
Although Solana has been receiving substantial attention from institutional investors, the same has not been reflected in its market prices. At the time of press, Solana’s native token SOL is trading at $22 after losing nearly 9 percent in the last 7 days. At current prices, the altcoin has lost more than 90 percent from its all-time high of $260 reached two years ago.
Driven by game-changing technological developments such as the newly unveiled upgrade that will see it support user privacy through “confidential transfers,” continued institutional investment, and aggressive community backing, SOL investors are confident that the digital asset will be a top performer in the next bull run.
