Solana Attracts $29M as It Readies for Spot Exchange-Traded Fund Launch


In the fast-paced world of cryptocurrency, Solana (SOL) has swiftly caught the discerning eye of institutional investors and is becoming a digital asset of increasing intrigue. These heightened movements suggest Solana is potentially on the cusp of launching its Spot Exchange-Traded Fund (ETF), a significant development that could have ripple effects on the currency’s valuation.

In CoinShares’ most recent weekly analysis, Solana-powered investment products proudly carried a net inflow of $29 million for this year alone. Just last week, these funds boasted net inflows amounting to an impressive $8 million. And astonishingly, this month has marked an inflow of a whopping $19 million into Solana funds.

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This seismic shift elucidates not only the substantial appetite for Solana among institutional investors but also provides powerful evidence that SOL could be the next cryptocurrency asset to flaunt its own Spot ETF, following closely in the footsteps of approved Spot Ethereum ETFs.

When considering the next application for a Crypto ETF, fund providers cannot ignore the burgeoning popularity of certain crypto currencies. Out of all the candidates, Solana stands out as a striking favorite recording the most substantial year-to-date investment activity among the crowd of crypto funds, coming in behind only the crypto giants Bitcoin and Ethereum.

The active demand drummed up by institutional investors has also shown Solana’s appeal, with the venerable asset management firm Pantera Capital making a bid and acquiring a share of the discounted SOL tokens in the fallout of FTX’s bankruptcy situation.

Commenting on this trend, Brian Kelly, founder of digital assets investment firm BKCM, recently stated that given the “Big 3” standing of Bitcoin, Ethereum, and Solana in the current cycle, it logically follows that a SOL ETF would be the next key player in line. This shift is foreseeable since Bitcoin and Ethereum Spot ETFs have already gained approval.

Adding weight to the Solana narrative, asset manager Franklin Templeton echoed similar sentiments, speculating that the cryptocurrency could soon take its place as the third-largest crypto token on the market, trailing only Bitcoin and Ethereum. Bloomberg analyst James Seyffart also weighed in on the possibility of a Solana ETF being imminent, emphasizing that it could generate even more demand than other digital assets, with the exception of Bitcoin and Ethereum.

Last week solidified a positive momentum for crypto asset investment products, marking the third consecutive week of net inflows, with an astounding $1.05 billion flowing into these investment funds. The lion’s share of these inflows made their way into Bitcoin investment products, recording net inflows of $1.01 billion.

Simultaneously, Ethereum investment initiatives recorded $36 million in net inflows, the steepest incline since March. CoinShares noted that such a shift was probably an early response to the States-approved Spot Ethereum ETFs.

In the sea of altcoins, Solana is not swimming alone. Alongside SOL’s net inflow windfall of $8 million, Litecoin, XRP, and Chainlink also reaped considerable flows, receiving $2.8 million, $400,000, and $600,000 respectively. Thus, the recovery of its price amid escalating institutional interest suggests a bullish environment for Solana in the crypto market.