Data from Coin Shares’ weekly digital asset fund flows reveals that Solana is in high demand from digital asset managers as last week’s flow by asset statistic revealed that Solana took the lion share of the total flow, representing 86.4% with $49.4 million.
The combined total inflows for cryptocurrency investment products stood at $57 million for the week. Asides from Solana, Cardano took 2nd spot with $3.5 million and Ether had an outflow of $6.3 million according to the table which means that Ether’s demand was negative last week. Bitcoin remained flat for the week with an inflow of $200,000.
Despite Ether’s outflow, it is still the second most held cryptocurrency by digital asset managers as it represents 26.5% of the Asset Under Management (AUM) of these firms to the tune of $14.9 billion according to the table. Bitcoin still takes the lion share representing 66.07% of the total AUM by digital asset managers.
According to the report, last week’s total inflow of $57 million represents digital asset managers’ 4th consecutive week of inflows which means that for the past 4 weeks, digital asset managers have been accumulating cryptocurrencies into their portfolio.
The surge in the inflows to Solana products came in the week where the price of SOL gained 36%. The bulls have largely ignored its overvaluation risks as investors continue to treat Solana as a long-term competitor to Ethereum, the world’s leading smart contracts platform. SOL is up over 11,350% Year-to-Date.
Solana now represents the 5th most held cryptocurrency by digital asset managers with $97 million. The report stated, “During last week’s price falls Solana’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34%, having risen 24% week-on-week. This was reflected with inflows, dwarfing any other digital asset, totaling almost $50m. A combination of price appreciation and inflows now brings Solana’s assets under management to $97 million, the 5th largest of all investment products.”
According to the flow by providers chart, last week, 21Shares led the charge with an inflow of $75 million. Popular crypto asset manager, Grayscale has its inflow flat for the week in question. Grayscale still leads with an AUM of $41.8 billion.
The report stated, “Digital asset investment products saw inflows totaling US$57m last week, posting their 4th week of inflows. Volumes in investment products have now risen 143% since their lows in early July to US$3.8bn. This rise in volumes and inflows indicates investors are now beginning to be more active following the seasonal summer doldrums. The trend of diversification remains intact amongst investors, with inflows into Cardano, multi-asset, XRP and Polkadot totaling US$3.5m, US$3.2m, US$3.1 and US$1.7m respectively.”
SOL is trading at $165 as of the time of this writing; up 5.42% for the day.