Solana sees a “dramatic increase” in institutional investment as exposure to Altcoin grows, CoinShares says

Solana (SOL) is witnessing a “dramatic increase in allocations” from asset managers and hedge funds, which are also increasing their exposure to altcoins, according to Coinshares.

“Investors are more optimistic about it SolanaJames Butterfill, head of research at CoinShares, wrote in an April 24 post report. The findings are based on a survey of 64 investors, with combined assets under management of $600 billion.

Investors prefer Solana over Ethereum

Market leaders Ethereum (ETH) and Bitcoin (BTC) are still the favorites, the survey showed. Following the adoption of spot Bitcoin ETFs (exchange traded funds) in the US, 41% of participating investors believe BTC has the “most compelling growth prospects.”

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

Investors have a more positive outlook for Ethereum rival Solana, he added.

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

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

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

— LondonCryptoClub (@LDNCryptoClub) April 26, 2024

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

“It is not surprising that some of the biggest contributors have contributed to this [increased exposure] were allocations from institutional investors who finally had the opportunity to gain exposure to Bitcoin through the US ETFs,” he wrote.

SOL Ecosystem loses some market value, but maintains a capitalization of $209 billion

The Market capitalization as the Solana ecosystem has fallen slightly over the past 24 hours, but still stood at over $209 billion at 3 a.m. EST. SOL itself has experienced a drop in value of over 2% in the past 24 hours.

Solana meme coins performed well during this period. Dogwifhat (WIF) saw its price rise by more than 1% in the last trading day.

Meme coin presales on Solana are also red hot following the introduction of so-called “send SOL” ICOs. These don’t require a timer, stages, hard cap or even a whitepaper.

Developed by meme coins including $SLERF, $PUMP, $PUNDU and $BOME, is the latest, most popular example Slothana (SLOTH), which raised more than $15 million in a month-long ICO ending on Monday, April 29.

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