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Buying Opportunity: Crypto Institutional Investors Pump $862 Million Into The Market

Crypto investment products are up again in terms of inflows, giving the crypto industry a much-needed breather. Recent market dynamics have seen Bitcoin leading the surge of inflows into crypto investment products, signaling a possible resumption of bullish sentiment.

James Butterfill, head of research at Coinshares, reported this inflow in a social media post. The statistics indicate that crypto investment products received inflows of $862 million over the timeframe spanning from March 23 to March 29 to reverse the record net outflows of $942 million set in the prior week. Unsurprisingly, most of the inflow went into Bitcoin, hinting at a potential buying opportunity for investors still waiting to get in on the asset during this bull run.

Institutional Investors Pump $862 Million Into Crypto Market

James Butterfill termed the inflow registered last week as a “recovery for ETFs.” This is rightly so, as these US-based Spot Bitcoin ETFs gave investors a scare in the prior week with lackluster inflow, hinting at the possibility that the bull run could be coming to an end. This led to crypto investment products bleeding for the first time after seven consecutive weeks of inflows. 

However, it would seem the sentiment regarding Spot Bitcoin ETFs is now back to a very bullish outlook. As a result, Bitcoin registered $865 million in inflows to bring its year-to-date inflow to $12.83 billion. On the other hand, Ethereum and multi-asset products registered $18.9 million and $2.6 million in outflows, respectively, to offset some of the inflows registered by Bitcoin. 

Inflows of $6.1 million, $0.2 million, $0.3 million, $1.1 million, and $2.4 million were recorded for Solana, Litecoin, XRP, and Polkadot, respectively. Polkadot also registered an inflow of $2.4 million. Short Bitcoin products, on the other hand, witnessed outflows of $2 million. 

Crypto inflows

Buying Opportunity For Bitcoin?

Bitcoin’s price surge for the past few months has largely been due to action surrounding Spot Bitcoin ETFs. Interestingly, last week’s inflow activity saw Bitcoin breaking into the $70,000 price territory multiple times last week. This bullish momentum wasn’t sustained, allowing the bears to create a resistance at around $71,000.

Nevertheless, the inflow indicates something bullish might be brewing behind the scenes. Fundamentals surrounding the crypto point to a bullish price action throughout April, particularly as the next halving approaches.

Bitcoin went through bearish price action over the weekend, correcting by almost 7% from $71,285. At the time of writing, Bitcoin has broken below a support at $68,500 and is now trading at $66,510. According to Santiment, the price dip has given crypto traders a sense of buying opportunity with calls of “buy and bullish” spiking across social media.

Crypto total market cap chart from Tradingview.com

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What’s Next for Crypto?

The approval of Bitcoin ETFs in January was a catalyzing event for crypto, says Gregory Mall, head of investment solutions at AMINA bank. How will the upcoming halving affect markets going forward and which projects are likely to win out over the long-term?

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Solana Demand Soars As Institutions Buy Up SOL At A Massive 870% Premium

Solana (SOL) looks to be attracting the attention of institutional investors, with this Solana fund trading as high as an 870% premium following SOL’s bullish momentum. These investors’ interest in the SOL token isn’t surprising as on-chain metrics suggest it is still undervalued, and a parabolic rise might be on the horizon. 

Grayscale Solana Trust Trades At A Premium 

Per data from Grayscale’s website, the Grayscale Solana Trust (GSOL) is currently trading at $317 per share, representing a significant premium from SOL’s current price. The premium had risen to 870% on March 8 when GSOL was trading at $540. Shares in the fund are designed to track the value of SOL’s price, allowing institutional investors to have exposure to the token without holding it. 

The disparity between the share price of GSOL and SOL’s price might be because institutional investors are limited in the means to gain exposure to SOL. As such, a fund like GSOL could see its price increase exponentially (just like now) when there is increased institutional demand for the SOL token.

Institutional interest in SOL is also evident from NewsBTC’s recent report that crypto-focused asset manager Pantera Capital is raising funds to buy $250 worth of SOL. Investors are likely to jump on this opportunity, considering that these SOL tokens will reportedly be sold at a fixed price of $59.95, meaning there is an opportunity to make significant gains from the deal. 

SOL Still Greatly Undervalued

Crypto analyst Hansolar suggested that SOL was still undervalued when he mentioned that the crypto token might not take off until BTC and ETH hit new all-time highs (ATH). He also predicted that SOL could rise to as high as $600 in this bull cycle. Meanwhile, the argument about SOL being undervalued is backed by the fact that it is still far off from its ATH of $260. 

Crypto tokens are known to set a new ATH in every bull run, and there is every likelihood that it won’t be different for SOL this time around. Moreover, SOL and the Solana network are gaining much traction heading into this cycle, which should contribute to more price surges for the SOL token. 

Solana recently registered an ATH in the number of daily new addresses, with many users onboarded into the ecosystem. This increased interest in the network has been partly due to its DeFi landscape, which is going head-to-head with Ethereum’s, and the current meme coin frenzy on Solana, which has attracted investors. 

At the time of writing, SOL is trading at $152, up over 2% in the last 24 hours, according to data from CoinMarketCap. 

Solana price chart from Tradingview.com

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Crypto Institutional Investors Are Frontrunning Retail As Inflows Reach Record Highs

Crypto investment products continue to shine in the middle of a strong bullish market sentiment. New data has shown institutional investors and traders are now going full speed on crypto investment products, allowing inflows to attain a new inflow record. According to CoinShares, a digital asset investment firm, digital investment products registered a record weekly inflow of $2.7 billion last week, pushing the year-to-date inflow near a new record.

Crypto Institutional Investors Continue To Aim Higher

The crypto market has attracted its fair share of rich visionaries and institutional traders over the years, with most just dabbling in and out. Recent market factors, however, have opened the industry and made it palatable to big traders. As a result, trading volume from this cohort of investors has ballooned to new highs.

In its latest weekly report, CoinShares noted that investment products based on cryptocurrencies reached a new milestone of $2.7 billion inflow last week, bringing the run to six consecutive weeks of inflows. Hence, the total inflow year-to-date is now at $10.3 billion, just $300 million shy of the $10.6 billion inflows recorded in 2021.

To put this into perspective, we’re less than three months into 2024, and inflows are already on par with those recorded throughout the bullish cycle in 2021.  At the same time, trading volume reached a new record of $43 billion for the week, smashing the $30 billion record set in the previous week.

Unsurprisingly, most of this activity can be credited to Bitcoin, with the majority of inflow going into the cryptocurrency. According to CoinShares, Bitcoin remained the focus of investors to attract $2.6 billion in inflows last week, representing 96% of the total inflow. This comes despite a $1.65 billion outflow from Grayscale’s Spot Bitcoin ETF.

Speaking of Spot Bitcoin ETFs, there’s no denying the fact that these investment vehicles have been the primary catalyst for Bitcoin’s recent growth. This has allowed Bitcoin to break over various price resistance to reach new all-time highs. Last week, the 10 ETFs in the US ended the week at a net inflow of $2.238 billion, with BlackRock and Fidelity leading the charge. Despite recent price rises, short Bitcoin products also recorded $11 million in inflows last week.

On the other hand, Ethereum investment products witnessed an outflow of $2.1 million last week to reverse $84.7 million inflows recorded in the prior week. This is despite Ethereum crossing over the $4,000 price level for the first time in two years. The reverse case is for Solana, which witnessed $24 million inflows after an outflow of $11.9 million in the previous week. 

Polkadot, Fantom, Chainlink, and Uniswap also saw inflows of $2.7 million, $2 million, $2 million, and $1.6 million, respectively.

Crypto total market cap chart from Tradingview.com

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Ethereum Outperforms Bitcoin As Institutional Investors Clamor For ETH Exposure

Reports have revealed that institutional investors are shifting their focus to Ethereum, displaying a preference compared to the largest cryptocurrency, Bitcoin. Despite Bitcoin’s recent rally to over $55,000, Ethereum’s unique features and potential developmental capabilities continue to capture institutional players’ interest. 

Institutions Favor Ethereum Over Bitcoin

On February 24, cryptocurrency exchange, Bybit, published a research report on its users’ asset allocation. The research examined investors’ hodling and trading behaviours, covering the period from July 2023 to January 2024. Bybit’s report also provided valuable insights into investors’ asset allocation across cryptocurrencies such as altcoins, stablecoins and meme coins, shedding light on the specific coins users are currently bullish or bearish on.  

According to the research report, Ethereum has unexpectedly emerged as the primary cryptocurrency choice for institutional investors. The report revealed that “institutions are betting big on Ethereum,” allocating more of their funds to ETH compared to BTC. 

Bybit has disclosed that the recent rise in interest in Ethereum began in September 2023, when ETH was still trading around $2,000. Subsequently, Ethereum’s market sentiment became more bullish, experiencing a surge in investor interest to about 40% by January 2024. The crypto exchange has confirmed that, as of January 31, ETH has become the single largest cryptocurrency held by institutions.

Bybit’s report also revealed that institutional investors’ interest in Bitcoin began to wane following the United States Securities and Exchange Commission (SEC) approval of Spot Bitcoin ETFs on January 10, 2024. At the time, Bitcoin had experienced massive selling pressures, resulting in investors trimming their BTC holdings to favour other cryptocurrencies. 

The excessive allocation of Ethereum is reportedly attributed to investors anticipating a favourable outcome from Ethereum’s upcoming Decun Upgrade, slated to launch in March 2024. 

Notably, Bybit has disclosed that it is still being determined if the recent shift to Ethereum is a short-term manoeuvre or a more prolonged move. However, the approaching Bitcoin halving in April potentially adds a layer of bearish risks, as projections indicate Bitcoin’s significant rise in value to new all-time highs during the halving phase. 

Ethereum price chart from Tradingview.com (Bitcoin)

Retail Investors Think Otherwise

Bybit’s research report also examines the asset allocation trend for retail investors on the cryptocurrency exchange. The report revealed that retail investors are significantly more bullish on Bitcoin than Ethereum, allocating more funds into BTC than ETH despite Ethereum’s recent surge in value. 

Over the past week, Ethereum has experienced a substantial hike in its price, jumping over 7% and outpacing Bitcoin, suggesting a potential for a more extensive upward trajectory. At the time of writing, Ethereum is trading at $3,227, reflecting a 4.05% increase in the last 24 hours, according to CoinMarketCap. 

While Ethereum’s massive rally has successfully elevated the sentiment among institutional investors, retail investors remain less swayed, opting to hold onto or incorporate additional Bitcoin into their diversified portfolio of digital assets. 

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Bitcoin, Solana Take Center Stage In $721 Million In Institutional Inflows

According to a CoinShares report, Bitcoin and Solana led the way in the amount of institutional inflows into digital asset investment products last week. The report also highlighted an emerging trend among Spot Bitcoin ETFs in the US. 

Bitcoin Records $703 Million In Inflows

Bitcoin is reported to have seen inflows totaling $703 million last week, thereby accounting for 99% of all flows into these investment products. Solana came in a distant second with an inflow of $13 million, outperforming the second-largest crypto token, Ethereum, which saw an inflow of $6.4 million. 

The spotlight was on Spot Bitcoin ETFs in the US, with these funds seeing an inflow of $721 million last week. These new ETFs are said to have now averaged $1.9 billion in inflows over the last four weeks, bringing their total inflows to $7.7 billion since launch. Meanwhile, Grayscale’s GBTC has contributed largely to the $6 billion that these funds have recorded as outflows so far. 

CoinShares noted that these outflows have slowed in recent weeks, suggesting that GBTC investors have cooled off on taking profits. The inflows recorded by other Spot Bitcoin ETFs have also been able to overshadow GBTC’s outflows. NewsBTC had also recently reported how BlackRock’s IBIT had surpassed GBTC in trading volume for the first time. 

A Drop In Trading Volume

Last week was a relatively slow week for digital asset investment products in terms of trading volume. The report highlighted how trading volumes in ETPs (Exchange Traded Products) fell to $8.2 billion compared to the prior week’s total of $10.6 billion. This drop in trading volume was well evident in the figures that the Spot Bitcoin ETFs recorded last week. 

Notably, these funds recorded a daily trading volume of $924 million on February 1 last week, the first time that the trading volume was under $1 billion. This trend continued the next day, with the Spot Bitcoin ETFs combined recording $922 million in trading volume. 

Bloomberg analyst Eric Balchunas, however, suggested that there was no need to be alarmed. He noted in an X (formerly Twitter) post how there is usually a slow decline after a big, hyped launch. What is, however, evident is the fact that these funds have lived up to the hype so far. BlackRock and Fidelity alone (the top two issuers by AuM, excluding Grayscale) now hold over 134,358 BTC ($5.7 billion) for their Spot Bitcoin ETFs. 

Interestingly, their funds also made the top 10 of all ETF inflows in January. This shows an impressive interest in the funds and that institutional adoption of the flagship crypto token is on the rise. 

Bitcoin price chart from Tradingview.com

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Institutional Investors Increase Bitcoin Appetite Ahead Of Spot ETF, Report Shows

A report by K33 research analysts has provided insight into how much institutional investors’ appetite for Bitcoin has increased ahead of a potential approval of a Spot BTC ETF. The research firm emphasized a particular indicator to drive home their point and provided further insight into what the future holds if these ETFs get approved.

The Derivatives Market: An Indicator Of Institutional Interest  In Bitcoin

In the report written by K33’s Senior Analyst Vetle Lunde and Head of Research Anders Helseth, they noted that the derivatives market was important as it can be used to gauge institutional traders’ interest in Bitcoin. In line with this, they touched on how there has been a significant increase in open interest in the Chicago Mercantile Exchange (CME) derivatives market.

The K33 report specifically noted that the CME’s open interest has grown by over 3,4000 BTC over the past week. Meanwhile, CME’s open interest remains near all-time highs of 110,000 BTC. The increased activity on the CME has resulted from these traders’ desire to gain exposure to Bitcoin ahead of the “imminent ETF verdict.”

With a potential approval on the horizon, it is believed that many traders are looking to make as much profit as they can from this bullish event. Meanwhile, others have genuinely become bullish on the flagship cryptocurrency and want to gain exposure to it in any way they can. The CME is arguably the most accessible means to gain exposure to Bitcoin for this class of investors. 

Notably, the K33 analysts highlighted how the open interest in the CME exchange had picked up the pace back in October. Coincidentally or not, this happened to be when Bitcoin and the broader crypto market picked up steam, as many believed that the Spot Bitcoin ETF rumors were the reason for the rally. 

Bitcoin price chart from Tradingview.com

CME To Lose Market Share Once ETFs Get Approved

NewsBTC had in November reported how CME had overtaken Binance in Bitcoin futures. Data from Coinglass also shows that the CME is still well ahead in terms of Bitcoin futures open interest. However, that could change soon enough as the K33 report touched on the possibility of open interest in CME collapsing once these Spot Bitcoin ETFs get approved. 

An approval can cause selling pressure on CME as these institutional investors might look to take profit while others will be looking to transfer their capital to the Spot ETFs. K33 elaborated on the latter. The report noted that futures-based ETFs currently account for 46% of the CME’s open interest. 

Considering that futures and Spot ETFs will be in direct competition, they expect the latter to become the more favorable option. As such, these K33 analysts foresee a decline in the open interest, which these futures ETFs account for. They project that many institutional investors will look to rotate a substantial portion of their capital to the Spot ETFs.

At the time of writing, Bitcoin is trading at around $42,800, down in the last 24 hours, according to data from CoinMarketCap. 

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The Bulls Are Back: Crypto Institutional Inflows Balloon To 2021 Levels

Crypto investment products have experienced another week of inflows, bringing the run to 10 consecutive weeks. According to CoinShares’ latest report on digital asset investment funds, inflows into crypto products totaled $176 million last week, bringing the total inflow in 10 weeks to $1.76 billion. The timing is not a coincidence, as most cryptocurrencies turned green again last week in terms of price action.

Total Crypto Inflows Hit $1.76 Billion In 10 Weeks

After a lackluster action for most of the year and some weeks of net outflows, the most recent data shows smart money investors are betting big on crypto again. Investments in digital asset funds have been on the rise for the past two months, ignited by the crypto market bull run which started in the middle of October. As a result, the inflows have ballooned every week, breaking levels not seen since 2021’s crypto market bull run. 

Digital asset investment funds ended November with an inflow of $176 million, although down from the $346 million registered in the week before. Most of the money last week went into Bitcoin, with the cryptocurrency seeing $133 million in inflows. 

Bitcoin remains the most popular digital asset for institutions, and interest has really piqued with the applications of spot Bitcoin ETFs in the US waiting for approval from regulators. As a result, the crypto has strengthened since October, breaking various price levels and resistances, the latest being the $42,000 price level.

The sentiment has also flowed into the altcoin market. Ethereum saw inflows of $31 million last week, bringing its 5-week inflow run to a total of $134 million. Multi-asset investment products that provide exposure to a basket of crypto assets saw $2.3 million in new investment. 

Crypto total market cap chart from Tradingview.com (Institutional investors)

Solana and XRP saw inflows of $4.3 million and $0.5 million respectively. On the other hand, Litecoin saw outflows of $0.2 million, and Short Bitcoin products saw $3.6 million inflows after three consecutive weeks of outflows. 

Most of the inflows came in from Canada, Germany, and the US, which saw inflows of $79 million, $57 million, and $54 million respectively. Australia and Sweden also saw outflows of $0.5 million and $0.2 million respectively. However, the overall trend shows institutions are still bullish on crypto in the long run.

It’s exciting to see such numbers again, as they are reminiscent of past bullish sentiment in the crypto industry. According to CoinShares, this run of inflows is now the largest since October 2021, which saw the launch of the futures-based ETF in the US. 

Assets under management have also risen by 107% this year and are now at $46.2 billion, but still below the $86.6 billion seen in 2021. However, this record is ready to be overtaken in the coming year, as the latest data provides further evidence that institutional interest in the crypto market will continue for a while.

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Institutional Investors Pour $346 Million Into Crypto – Here Are The Winners

Crypto investment products have experienced another week of inflows, bringing the run to nine consecutive weeks of inflows. According to CoinShares’ latest report on digital asset investment funds, inflows into crypto products totaled $346 million last week, with some cryptos receiving more investments than others. 

With last week’s numbers, the total value of inflows into crypto investment funds this year now stands at $1.663 billion.

Overview Of Institutional Investment In Crypto This Week

Although volatile and still in its nascent phase, the crypto market has attracted its fair share of rich visionaries and institutional traders. While companies like MicroStrategy and Tesla are investing on the spot end of things by buying crypto assets, others are getting exposure to assets through exchange-traded products (ETPs). This is particularly good, as institutional backing in ETPs also brings more stability and legitimacy to the space.

According to CoinShares, Bitcoin has attracted most of the inflows. Bitcoin has been in the spotlight for the past few months, particularly with Spot Bitcoin ETFs waiting to be approved in the US. 

Bitcoin ETPs received a total of $312 million in new inflows last week, bringing its total inflows this year to $1.55 billion. At the same time, Ethereum ETPs witnessed an inflow of $33.5 million, a 915% increase from the previous week’s inflows of $3.3 million. 

Solana ETPs on the other hand, saw an inflow of $3.5 million, a 74% drop from the previous week’s inflow of $13.6 million. Polkadot and Chainlink also saw inflows of $0.8 million and $0.6 million respectively. On the other hand, short Bitcoin products had outflows of $0.9 million last week, a third consecutive week of outflows.

What Is Driving The Institutional Interest?

Institutional investments in digital asset products are now at the highest point since the bull market in late 2021. According to CoinShares, the total assets under management (AuM) are now at $45.3 billion. Most of the momentum for this surge came after the announcement of applications of spot Bitcoin ETFs in the US. 

Applications of spot Ethereum ETFs joined the list last week, spiking the flurry of inflows into Ethereum ETPs last week to extend a positive four-week run of $103 million.

ETPs are still one of the best ways for institutional investors to get exposure to cryptocurrencies like Bitcoin and Ethereum. Their use has been on the rise in recent months, and ETP volumes as a percentage of total spot Bitcoin reached 18% last week. 

This is poised to change soon when spot ETFs are approved and institutional investors have another way to get exposure to Bitcoin. Experts say the first approval for spot ETFs could come early in 2024.

Bitcoin price chart from Tradingview.com (Crypto institutional investors)

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Valour XRP ETP Set To Begin Trading, Can Institutional Inflows Drive Price To $10?

The XRP price may be gearing towards a bullish momentum with the potential release of multiple ETPs and the anticipated launch of Valour’s XRP ETP into the European markets next month. 

Valour XRP ETP To Enter European Markets

Valour, a publicly traded company backed by DeFi Technologies, a crypto-based software organization, has announced a new XRP Exchange Traded Product (ETP). In a press release published on Wednesday, DeFi Technologies disclosed the launch of Valour’s XRP ETP in December 2023. 

A popular YouTuber, Zack Rector has stated in a recent YouTube video that the token is positioned to take advantage of a large flow of liquidity driven by the initiation of multiple XRP ETPs. 

Including Valour’s ETP, there have been many other ETPs launched by industry-leading crypto companies. 21 Shares, a Swiss financial institution, is one of the prominent companies that issued its XRP ETP (AXRP) in 2019. Since its launch, AXRP has recorded approximately $49 million in assets under its control and the ETP earns a year-to-date return of +69%. 

Rector disclosed that the growing number of ETPs could trigger significant institutional inflows that could push the adoption of the token and possibly drive its price upwards. Furthermore, the integration of an XRP ETP has the potential to significantly advance the ecosystem by enhancing liquidity and improving accessibility for retail and institutional investors. 

ETP Influence On The Price

The announcement of Valour’s XRP ETP comes as a positive development for the community and the broader crypto space. Various crypto investors have expressed their optimism about the significant impacts these ETPs could have on the XRP market.

Just as the news of Spot Bitcoin ETF applications propelled Bitcoin’s price above $37,000, institutional flows from Valour’s XRP ETP could drive the token’s price to $10. 

The ETP issued by 21 Shares Ripple is a prime example of how XRP ETPs have performed in the past. After being traded 447 times on the market, this particular ETP generated $5 million in revenue. 

Valour’s upcoming ETP has become a focal point for investors seeking strategic investment opportunities. Crypto investors are closely monitoring the market to assess the potential gains that may follow the ETP’s debut. 

The anticipated launch of Ripple’s IPO and the final resolution of the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) are also major events that could help drive the price of the token to higher levels. 

XRP price chart from Tradingview.com

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Solana Captures Institutional Investors’ Attention, Inflows Rise To $135 Million

Solana has held its stance among altcoins, registering inflows more than any other cryptocurrency besides Bitcoin last week.  Institutional investment products have witnessed consecutive eight weeks of inflows, with some cryptocurrencies receiving a greater amount of inflows than others.

According to the new CoinShares report on digital asset funds, the majority of this money went into Bitcoin products as the crypto continues to attract investor interest in light of recent developments in the crypto industry. 

Solana Gains Momentum Among Institutional Investors

Solana has been on an incredible run this year, with its native SOL token up over 465% since the beginning of the year. At the same time, investment products tied to Solana have attracted major interest from institutional investors, with inflows now topping $135 million this year.

According to CoinShares, digital asset investment funds registered a total inflow of $176 million last week. Out of this total inflow, $155 million went into Bitcoin, with the last eight weeks of inflows now representing 3.4% of the total assets under management. As a result, the total inflow has now reached $1.32 billion this year, although well behind 2021 and 2020, which saw $10.7 billion and $6.6 billion respectively.

CoinShares’ latest report reveals that weekly inflow into Ethereum products dropped by an astounding 93.27% from $49.1 million to $3.3 million. Solana on the other hand, increased by almost 10% from $12.4 million to $13.6 million. 

Other altcoins also struggled to receive major inflows, with Litecoin and XRP only registering inflows of $0.4 million and $0.5 million respectively. Uniswap and Polygon saw minor outflows of $0.55 million and $0.86 million respectively. 

Factors Influencing The Inflow

Most cryptocurrencies went through a brief period of consolidation last week, but this didn’t roll over into investment products. The report from Coinshares attributes the inflows into Bitcoin in particular to a strong bullish sentiment related to the impending approval of a spot-based Bitcoin ETF in the US. This is particularly evident, as Short-Bitcoin outflows saw another outflow of $8.5 million last week.

Amid these influences and a 101% price surge last month, Solana has seen growth in other aspects of its ecosystem that may have attracted institutional investors. For one, Solana has delivered one of the most impressive performances on TVL in the most recent months. 

Data from DeFiLlama puts the total TVL on the network at $576.44 million, a 77.62% increase in the past month. The platform also revealed a spike in SOL trading volume on decentralized exchanges in the past week.

According to the on-chain intelligence platform Messari, Solana is now the hub for Decentralized Physical Infrastructure Network (DePIN) projects.

Solana (SOL) is currently trading at $56.27 with investors still anticipating a strong break above $60. 

Solana price chart from Tradingview.com (Institutional investors)

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Solana Institutional Inflows Surge In One Week, Can The Price Reach $100?

Institutional inflows into digital asset investment products based on Solana spiked last week, particularly as these investment products saw a 7th consecutive week of inflows. 

Digital asset investment products have had inflows since the end of September and throughout October, reflecting the bullish sentiment in the broader crypto market. As a result, inflows into Solana have increased steadily, and last week jumped by 15% compared to the week before. 

Solana Institutional Inflows Surge

Solana has been on an incredible run recently and has had one of the best price gains this month. Solana’s native token SOL has seen its price skyrocket over 160% in the past 30 days alone amidst the wider buying in the crypto industry. The crypto is up by 33% in a 7-day timeframe, despite the ongoing consolidation in Bitcoin, Ethereum, XRP, and a few other cryptocurrencies in the same timeframe.

According to CoinShares’s latest weekly report on digital asset funds, inflows into digital asset investment products did not mirror this consolidation, as inflows reached $293 million last week. Solana had around $12.4 million in inflows, up from $10.8 million the previous week. As a result, its year-to-date inflows have now crossed over $120 million. 

On the broader end, total exchange-traded products have now crossed a historic $1 billion mark this year and are now at $1.14 billion. This was particularly fueled by inflows into Bitcoin investment products, which made up around 19% of the cryptocurrency’s total trading volume last week. 

Bitcoin saw inflows totaling $240 million last week, pushing its year-to-date inflows to $1.08 billion. On the other hand, short-bitcoin saw $7 million in outflows, indicating an ongoing positive sentiment. Ethereum also witnessed an inflow of $49 million, while Litecoin and XRP had outflows of $0.3 million and $3.1 million, respectively. 

Can SOL Reach $100?

Solana is now definitely on its way to the $100 mark, as shown by technical analysis and fundamental analysis of strong bullish price action and institutional inflows. Solana is now looking to shake off the deterrence from the FTX fiasco and is now up by more than 520% since the beginning of the year. 

On-chain data also shows that Solana has grown its DeFi TVL by $136 million since the beginning of November. According to DeFiLlama, the total TVL on DeFi protocols based on Solana now sits at $546 million.

At the time of writing, Solana is trading at $58, still a long way from its all-time high of  $260. However, SOL has been predicted to surge more than 80% in November. If the crypto’s momentum keeps accelerating at this pace, a return to the $100 price target seems well within reach. 

Solana price chart from Tradingview.com (Institutional investors)

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Solana Remains Institutional Investor Darling As Inflows Continue

Solana has gained the favor of institutional investors recently which has seen a marked increase in the amount of inflows that the altcoin has recorded. This trend has continued with last week’s numbers which show a significant amount of inflows for Solana compared to the likes of Ethereum.

Solana Inflows Reach $15.5 Million

According to data from the latest CoinShares report, the inflows into Solana for the last week came out to $15.5 million. This came while some altcoins such as Ethereum saw outflows for the week. For context, Ethereum outflows reached $7.4 million in the same time frame.

As a result of the latest round of inflows, the total Solana Asses under Management (AuM) has reached $74 million. This means that the Solana AuM is up 47% year-to-date, compared to Ethereum’s which has dropped continuously this year, climbing to $119 million in outflows year-to-date.

Cardano is another altcoin that saw inflows for the week but to a lesser degree. Its inflows were $0.1 million, bringing its total AuM to $24 million, with a $6 million increase year-to-date. Other investment products saw $0.9 million, leading their AuM to reach $76 million.

Multi-asset products, however, went the way of Ethereum with outflows of $0.6 million. This brings its AuM to $1.17 billion, a $31 million decrease year-to-date.

Solan price chart from Tradingview.com

Bitcoin Dominates Inflows

For the same week, Bitcoin once again came out ahead in terms of inflows, with numbers topping that of Solana. The leading cryptocurrency saw $55.3 million in inflows, bringing its AuM to $24.205 billion. The asset’s month-to-date inflows are currently sitting at an impressive $111.9 million.

In the same vein, Bitcoin’s year-to-date inflows have also remained on the high side with $315 million in inflows so far. This has further solidified its position as the leading asset with the most interest from institutional investors so far.

Short Bitcoin products were also not left out of the inflow trend. Its weekly inflows sit at $1.6 million, while the month-to-date inflows came out to $4.5 million. Its year-to-date inflows sit at $46 million, bringing its AuM to $99 million. In total, the AuM of crypto investment products is nearly $33 billion.

“Following recent price appreciation, total Assets under Management (AuM) have risen by 15% since their lows in early September, now totalling nearly US$33bn, the highest point since mid-August,” the CoinShares report said.

CoinShares also notes that the inflows could be linked to the excitement and anticipation of a Spot Bitcoin ETF being approved by the US Securities and Exchange Commission (SEC). However, the numbers are much lower compared to when asset manager BlackRock first announced that it had filed for a Spot Bitcoin ETF.