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Solana price motion may be trending downwards, but institutional investors are bucking the trend. This speck of positive Solana sentiment has come through an inflow report of digital asset investment report, with Solana coming up on top.
Digital asset investment products witnessed a cumulative outflow last week, especially as Bitcoin-based products did not attract investor inflow. Particularly, data from CoinShares’s weekly report on digital asset fund flows noted a complete outflow of $305 million last week, an unlimited difference from the $533 million registered within the previous week. Although nearly all of outflow got here through Bitcoin-based products, Solana managed to perform a 7,500% increase in inflows.
SOL Sees 7,600% Surge In Inflows
The digital asset investment landscape was marked by significant volatility in August. Last week’s cumulative outflows from the institutional area of interest highlighted the challenges faced by many cryptocurrencies. In response to probably the most recent CoinShares report, Bitcoin will be credited with the lion’s share of the outflows, with the crypto’s products registering $319 million price of outflows last week.
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Altcoins, alternatively, displayed various results last week. Ethereum, the leading altcoin, mirrored Bitcoin’s performance with an outflow of $5.7 million amidst a low trading volume week for Spot ETH ETFs. Nevertheless, every other altcoin managed to draw institutional inflow last week in what might be a mirrored image of growing confidence.
Notably, Solana-based products topped the charts with $7.6 million price of inflows, which is an unlimited increase from the $0.1 million it registered within the prior week. As such, the crypto managed to perform a 7,500% inflow increase. This positive momentum for SOL is especially notable since it marks a reversal from the negative sentiment that began to rise in mid-August. Just two weeks ago, Solana experienced probably the most significant outflow on record to the tune of $39 million, making the recent inflows much more essential.
Solana ETF Changing The Narrative
A big a part of the shift in Solana sentiment will be attributed to some rumors surrounding the launch of Spot Solana ETFs within the US. After the successful launch of Spot Bitcoin and Ethereum ETFs, the crypto industry has naturally shifted focus to the potential of a Spot ETF for the following big altcoin, and Solana has come into the limelight. Interestingly, Spot Solana ETFs recently went live in Brazil and the South American market. Essentially the most recent approval was given to Hashdex, a Brazil-based asset manager with over $962 million in assets under management.
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While applications for Spot Solana ETFs have yet to realize traction within the US, many market participants remain optimistic. One such voice of optimism is DeFi commentator @CryptoNobler.
🚨 NASDAQ just secured approval for the $SOL ETF!
SEC now not classifies $SOL as security, and BlackRock is already applying.
Solana bull run is about to ignite and lots of alts will skyrocket 1000x👇🧵 pic.twitter.com/XTWoFXecD3
— 0xNobler (@CryptoNobler) August 28, 2024
On the time of writing, Solana is trading at $134. Interestingly, the crypto trended downwards for nearly all of the last seven days until it bounced up off a support level at $127 on September 2. Solana has now been up by 4.52% up to now 24 hours.
SOL price loses $135 support | Source: SOLUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com