Investors Eyeing Up Solana and Avalanche as Cash Flows Into Funds
Money continued to flow into crypto investment funds last week, with investor altcoin interest centered on Solana and Avalanche, according to a new report.
While investors were mostly focused on Bitcoin, funds giving exposure to Solana and Avalanche last week received $3 million and $2 million, respectively, digital asset fund manager CoinShares said on Monday.
Renewed interest in Solana, the blockchain behind the sixth biggest cryptocurrency by market cap, SOL, and Avalanche, the network on which the asset AVAX runs, was sparked last month.
This was down to big names taking an interest in both networks: investment banking giant J.P. Morgan said in November it had used the Avalanche blockchain to tokenize portfolios; both Visa and Shopify have recently announced using Solana’s blockchain.
SOL is right now trading for $69.99—down over 4% in the past 24 hours, according to CoinGecko. But the coin has risen 15% over seven days. AVAX has shot up even more in the past week: it’s up 66%, trading hands for $36.25.
In the past day, it’s one of the best-performing cryptocurrencies and has gained 9% while the rest of the market struggles.
CoinShares said that digital asset investment products experienced their 11th straight week of inflows of $43 million. Such products include asset managers like 21Shares, Bitwise, and Grayscale.
Investors are by far drawn to Bitcoin, CoinShares said, and they put $20 million into BTC products, bringing year to date inflows to $1.7 billion.
The Monday report added that renewed interest in Ethereum, the second-largest cryptocurrency, was a “remarkable turn-around.” Seven weeks ago, investors were pulling money out of Ethereum products—at the time creating year-to-date outflows of $125 million—but now they’re back in the black. So far this year, Ethereum funds have seen deposits totalling $19 million.
Big investors are interested in the crypto sphere again because it’s likely a spot Bitcoin exchange-traded fund (ETF) will get approved in the coming months, according to analysts.
Such a product would give traditional investors exposure to Bitcoin and the crypto world in a hassle-free and regulated way.
The price of Bitcoin has shot up this year as a result.