Solana (SOL) saw a “significant increase in allocations” from institutional investors, according to the latest report reconnaissance Conducted by CoinShares. The survey of digital asset fund managers, which includes responses from 64 investors managing $600 billion in cumulative assets, indicates growing interest in altcoins, with Solana leading among the emerging favourites.
Solana sees increased demand from institutions
James Butterville, Head of Research at CoinShares, detailed the findings, saying: “Investors have expanded their exposure to altcoins, with Solana seeing a significant increase in allocations,” highlighting that nearly 15% of participants now own investments in SOL. . This represents a significant upside compared to previous surveys, including January results, which showed no institutional investment in Solana.
Butterville emphasized Solana's growing institutional acceptance, citing its growing appeal following recent technological advances and increased market presence. Meanwhile, Bitcoin continues to lead the market with more than 25% of participants invested in the leading cryptocurrency. It is closely followed by Ethereum at just under 25% as well.
Bitcoin and Ethereum, while maintaining their status as dominant digital assets, are seeing shifts in investor sentiment. Bitcoin remains the asset of choice with 41% of investors optimistic about its growth prospects, although this represents a slight decline from previous surveys.
Ethereum saw a decline in investor confidence, with around 30% of participants being optimistic about its future, down from 35%. This decline in Ethereum's appeal coincides with growing interest in alternative blockchains such as Solana, which offer different technological benefits and potential use cases.
On the other hand, the report finds that “investors are more optimistic about Solana.” About 14% of respondents believe Solana has a promising growth outlook, higher than the previous survey's signal of about 12%.
The survey also highlights the overall composition of digital asset investments. The digital asset now represents 3% of the average investment portfolio, the highest level recorded since the survey began in 2021. This increase is largely due to the introduction of spot Bitcoin ETFs in the US, which have allowed institutional investors to gain direct exposure to Bitcoin without having to… To the complexities of direct cryptocurrency holdings.
Despite the optimistic influx of institutional capital into cryptocurrencies like Solana, the report reveals that significant barriers still hinder their wider adoption. Regulation remains a major concern, with many investors citing it as a major obstacle to further investment in the asset class. “Regulation remains very high as a barrier, however it is encouraging to see concerns about volatility and custody continue to diminish,” according to Butterville.
Additionally, the survey highlighted that although investor interest in DLT remains high, the perception of cryptocurrencies as a good value investment has increased significantly. From January to April, the proportion of investors viewing digital assets as “good value” jumped from less than 15% to more than 20%, driven by increased customer demand and positive price momentum.
Looking to the future, the report notes that the digital assets landscape is evolving rapidly. As institutional investors continue to diversify their portfolios and seek exposure to innovative technologies, altcoins like Solana are likely to gain more traction. However, the pace of adoption will depend heavily on developments in regulatory frameworks and the broader economic environment, which continue to pose challenges and opportunities for investors in this space.
At press time, Solana was trading at $144.07.
Featured image from LinkedIn, chart from TradingView.com
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