Solana sees ‘dramatic increase’ in Institutional demand — CoinShares


Share this article

A recent survey conducted by CoinShares has unveiled a significant shift in institutional investor preferences, with Solana (SOL) experiencing a substantial increase in allocations. The Digital Asset Fund Manager Survey, which polled 64 investors managing a combined $600 billion in assets, highlights the growing interest in altcoins, particularly Solana.

James Butterfill, Head of Research at CoinShares, emphasized the broadening exposure to altcoins among investors, stating:

“Investors have been broadening their exposure to altcoins, with Solana seeing a dramatic increase in allocations.”

The survey revealed that nearly 15% of participants now hold investments in SOL, a notable rise from previous surveys, including January’s results, which showed no institutional investments in Solana.

While Bitcoin and Ethereum continue to dominate the market, with more than 25% and just under 25% of respondents invested in these assets respectively, investor sentiment appears to be shifting.

Bitcoin remains the preferred asset, with 41% of investors bullish on its growth outlook, albeit a slight decrease from previous surveys. Ethereum, on the other hand, has seen a dip in investor confidence, with about 30% of respondents optimistic about its future, down from 35%.

In contrast, Solana is gaining traction among investors, with around 14% of respondents expressing optimism about its growth prospects, up from approximately 12% in the previous survey. This increasing interest in Solana coincides with recent technological advancements and its growing market presence.

The survey also revealed that digital assets now represent 3% of the average investment portfolio, the highest level recorded since the survey’s inception in 2021. This increase is largely attributed to the introduction of US spot Bitcoin ETFs, which have facilitated direct exposure to Bitcoin for institutional investors.

Despite the positive influx of institutional capital into cryptocurrencies like Solana, the report highlights significant barriers to broader adoption. Regulation remains a primary concern, with many investors citing it as a key obstacle to further investment in the asset class. Butterfill noted:

“Regulation remains stubbornly high as a barrier, yet it’s encouraging to see that concerns over volatility and custody continue to diminish.”

The survey also revealed that while investor interest in distributed ledger technology remains high, the perception of cryptocurrencies as a good value investment has increased significantly. From January to April, the percentage of investors who view digital assets as “good value” jumped from under 15% to over 20%, driven by increasing client demand and positive price momentum.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source link

You might also like
Leave A Reply

Your email address will not be published.