Solana (SOL) is swiftly attracting the attention of institutional investors, who are increasingly showing a strong interest in this cryptocurrency. This trend suggests that Solana could be the next candidate for launching its Spot ETF, a move that could significantly influence the token’s price.
According to the latest weekly report from CoinShares, Solana investment products currently boast a year-to-date (YTD) net inflow of $29 million. Last week alone, these funds saw net inflows of $8 million, and for this month, Solana funds have recorded net inflows of $19 million.
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This trend underscores the growing demand for Solana among institutional investors and bolsters the case for SOL as the next cryptocurrency to potentially secure its own Spot ETF, following the approval of Spot Ethereum ETFs.
Source: CoinShare
Fund issuers will likely consider the popularity of other cryptocurrencies, besides Bitcoin and Ethereum, when deciding which Crypto ETF to apply for next. Solana emerges as a clear favorite, having recorded the highest YTD flows among other crypto investment funds, excluding Bitcoin and Ethereum.
The substantial demand for Solana among institutional investors is further highlighted by notable institutions like Pantera Capital, which actively bid for and purchased some of the discounted SOL tokens from FTX’s bankruptcy estate.
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Experts Foresee Solana Spot ETF Following Bitcoin and Ethereum Trends
The founder of the digital assets investment firm BKCM, Brian Kelly, recently suggested that a Solana Spot ETF could be the next logical step, given that Bitcoin, Ethereum, and Solana are considered the 'Big 3' for this cycle. With Spot ETFs for Bitcoin and Ethereum already approved, it follows that a SOL ETF could be next in line.
Supporting this narrative, asset manager Franklin Templeton also predicted that Solana would soon claim the position of the third-largest cryptocurrency by market capitalization, trailing behind Bitcoin and Ethereum.
Additionally, Bloomberg analyst James Seyffart weighed in on the possibility of a Solana ETF being the next in line. Seyffart stated that such a fund would likely see more demand than other digital assets besides Bitcoin and Ethereum. These insights from industry experts suggest a growing sentiment in favor of a Solana Spot ETF, reflecting the increasing prominence and potential of the SOL token in the cryptocurrency market.
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Bitcoin Dominates Inflows, with Ethereum and Altcoins Following Suit
During the previous week, investment products continued to experience net inflows for the third consecutive week, with a total of $1.05 billion flowing into these funds. The majority of these inflows were directed towards Bitcoin investment products, which recorded net inflows of $1.01 billion.
In comparison, Ethereum saw net inflows of $36 million, marking the highest inflow for Ethereum investment products since March. CoinShares observed that this surge was likely an early response to the approval of Spot Ethereum ETFs in the United States.
Source: TradingView
In addition to Solana, which saw a net inflow of $8 million, other altcoins such as Litecoin, XRP, and Chainlink also recorded notable flows. Specifically, $2.8 million flowed into Litecoin, $400,000 into XRP, and $600,000 into Chainlink.
See more: Cryptocurrency Prices and Market Cap
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