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Last week, institutional investors gained exposure to $13.2 million in Solana-based investment products, representing a 388 percent increase in inflows.
Institutional demand for cryptocurrency exposure has reached all-time highs, with altcoins now accounting for a record 35 percent of cash locked up in crypto investment products.
According to CoinShares’ Sept. 7 Digital Asset Fund Flows Weekly report, nearly 40% of the past week’s inflows to digital asset investment products were allocated t instruments tracking altcoins.
While $97.8 million was invested in crypto investment goods between Aug. 30 and Sept. 3, marking the sector’s third straight week of inflows, altcoin products received $38.9 million.
This week also saw a significant surge in institutional crypto investments, with inflows of $24 million and $21 million recorded in the preceding two weeks.
Approximately 35% of institutional crypto investment capital is currently parked in instruments tracking assets other than Bitcoin, representing a retest of the metric’s all-time high from May.
For the second week in a row, Ethereum (ETH) tracking products topped the altcoin pack, with inflows of $14.4 million, a 16.2 percent fall from the previous week’s $17.2 million.
Weekly inflows for Solana (SOL)-based products increased by 388 percent, with SOL items absorbing $13.2 million. This coincided with a 37 percent increase in the price of SOL over the same time period.
CoinShares reported that year-to-date (YTD) inflows into Solana products more than doubled this week, with $25 million invested in SOL instruments so far in 2021. SOL-based solutions now account for $44 million of total assets managed (AUM).
Funds based on Cardano (ADA) and Polkadot (DOT) also experienced significant inflows of $6.5 million and $2.7 million, respectively.
Bitcoin (BTC) investment products defied an eight-week outflow trend — the longest on record for any digital asset product — with inflows of $58.9 million for the week. Despite the bullish momentum, BTC investment products have seen outflows in 14 of the last 17 weeks.
According to CoinShares estimates, institutional asset managers presently have a combined AUM of $62.5 billion, which is close to the record high of $66 billion achieved in mid-May.
Grayscale, the top institutional asset manager, continues to dominate the competition, accounting for 73 percent of the sector’s combined AUM of $46.2 billion.