Solana

when

April

James

Institutional investors appear to be “broadening their exposure to altcoins” including Solana (<a href="https://cointelegraph.com/solana-price-index" rel="noopener noreferrer nofollow">SOL</a>), which has seen a “dramatic increase in allocations” from wealth managers and hedge funds, says CoinShares.
“Investors are more optimistic for Solana,” the asset manager’s head of research, James Butterfill, wrote in an April 24 report based on its survey of 64 investors with a combined $600 billion in assets under management.
Nearly 15% of surveyed investors said they had invested in SOL, a significant bump from CoinShares’ January survey which showed none of the respondents had any investment in the altcoin.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/1ffb93cb-0264-4d2a-84e2-5cd0f9a153c3.">
 <figcaption style="text-align: center;">Crypto investments in January (black diamonds) compared to April (blue). Source: CoinShares
 </figcaption>
</figure>
Butterfill noted XRP (<a href="https://cointelegraph.com/xrp-price-index" rel="noopener noreferrer nofollow">XRP</a>) had seen a “significant decline, with none of the survey respondents holding it now" compared to the January survey.
Despite the surveyed institutions not holding XRP in this survey, investment products for the cryptocurrency do see allocations, with CoinShares’ <a href="https://blog.coinshares.com/volume-179-digital-asset-fund-flows-weekly-report-84f3312ba409" target="_blank" rel="noopener noreferrer nofollow">report</a> showing minor inflows of $1.3 million to XRP products for the week ending April 19.
Meanwhile, Solana was third when ranked by the “most compelling growth outlook” with just under 15% of respondents agreeing — a bump up from over 10% from the same survey in January.
Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) however, remained in investors’ top spot with 41% agreeing it had the best growth potential.
Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) was runner-up with just over 30% of respondents bullish on its growth. Butterfill noted that “investor appetite has waned since January” with ETH’s score dropping from around 35%.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/17a4df27-5c64-4178-984f-7c28025ef7ff.">
 <figcaption style="text-align: center;">Cryptocurrency ranked by growth outlook. Source: CoinShares
 </figcaption>
</figure>
The survey also found the percentage of cryptocurrency&nbsp;<a href="https://cointelegraph.com/news/boomers-300-billion-crypto-markets-morgan-creek-capital" rel="noopener noreferrer nofollow">in investors’ portfolios</a> rose to 3% compared to 1.3% in January which Butterfill said was “the highest weighting since the survey began in 2021.”
“Unsurprisingly, some of the largest contributors to this were allocation from institutional investors who finally had the ability to gain exposure to Bitcoin via the U.S. ETFs,” Butterfill wrote
Equities — stocks — were still the most weighted asset class at over 55%.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/f46f39d6-15f1-474b-bb7c-484e9b6aad2a.">
 <figcaption style="text-align: center;">Institutions were second behind individual investors for being the most positioned in crypto. Source: CoinShares
 </figcaption>
</figure>
Exposure to <a href="https://cointelegraph.com/news/what-is-the-difference-between-blockchain-and-dlt" rel="noopener noreferrer nofollow">distributed ledger technology</a> was the main reason investors bought digital assets and despite most cryptocurrencies rising in price since January the percentage that said they are “good value” jumped from under 15% to over 20%.
“Client demand has risen too, as is often the case during positive price momentum,” Butterfill added.
<h2 id="crypto-still-has-significant-barriers-to-entry">Crypto still has “significant barriers to entry”</h2>
While the overall data trended positive toward crypto, wealth managers and institutional investors, in particular, reported there were “significant barriers to entry to the asset class.”
Of the respondents that didn’t have crypto in their portfolio “regulation remains stubbornly high” as a reason preventing them from crypto investments, Butterfill noted.
“Although this maybe due to corporate restrictions and the way in which regulatory guidelines are interpreted,” he added.
Related: <a href="https://cointelegraph.com/news/12-solana-presale-memecoins-abandoned-after-one-month" rel="noopener noreferrer nofollow">12 Solana presale memecoins abandoned after just a month</a>
As for investors who had crypto investments, <a href="https://cointelegraph.com/news/consensys-lawsuit-sec-ethereum" rel="noopener noreferrer nofollow">regulations and politics</a> were the top perceived risks to crypto, rising from the January results.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/688e38f0-79b1-4405-a502-bc69749fd811.">
 <figcaption style="text-align: center;">Investor beliefs on key risks to crypto. Source: CoinShares
 </figcaption>
</figure>
Butterfull said it was encouraging that volatility and custody concerns “continue to diminish.”
Magazine: <a href="https://cointelegraph.com/magazine/blockchain-detectives-mt-gox-collapse-birth-chainalysis/" rel="noopener noreferrer nofollow">Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis</a>

Solana sees ‘dramatic increase’ in institutional portfolios: CoinShares

Table of Contents

Cointelegraph

Other articles published on Apr 26, 2024

Bitcoin ETF: America’s Oldest Bank BNY Mellon Reveals BTC ETF Investments In Quarterly Filings

SAGA Price Prediction: Is History Poised to Repeat Itself?

US senators target cryptocurrency use in child abuse trade

Post-Halving Outlook: Ripple & Cosmos Investors See DeeStream (DST) as a Path to 70X Gains in Str...

DeeStream’s growth potential attracts Chainlink and Cosmos investors

Raboo Crypto Price Prediction for 2024–2027. How Does It Compare to Solana and Cardano

Join our free newsletter for daily crypto updates!