As learned, Solana (SOL) saw an unprecedented 1,966% increase in fund inflows over the past week, firmly establishing itself as a prominent leader in cryptocurrency-focused alternative investment products over the past week.
As learned, Solana (SOL) saw an unprecedented 1,966% increase in fund inflows over the past week, firmly establishing itself as a prominent leader in cryptocurrency-focused alternative investment products over the past week.
According to the latest report of CoinShares, a substantial amount of $5.9 million was allocated to SOL-related products in this short period of time. This increase not only reaffirms SOL’s dominance but also marks a nearly twenty-fold increase in inflows to Solana’s ETPs, totaling an impressive $17 million since the beginning of the year.
Contrary to this notable bullish trend in SOL, the broader market picture paints a different picture. While investment products for digital assets recorded a commendable inflow of $130 million, ETP volumes saw a significant decline, dropping from $17 billion in April to $8 billion.
This trend suggests a decreasing participation of ETP investors in the cryptocurrency ecosystem, which now constitutes only 22% of the total volume on reputable global exchanges.
When Solana ETF?
Amid growing traditional investor interest in SOL, speculation is emerging about the viability of a Solana ETF. However, the potential of such an ETF is closely related to the fate of the Ethereum ETF. Facing regulatory hurdles, the path to a Solana ETF appears equally challenging.
In particular, regulatory ambiguity surrounds the status of the Ethereum ETF, and the SEC’s classification of SOL as an unregistered security in last year’s case against the Kraken exchange adds to the uncertainty.
While investors await clarity on the ETF front, the prospect of a Solana ETF remains speculative, depending on regulatory developments and the resolution of the Ethereum ETF dilemma.
