A recent survey by CoinShares reveals a significant shift in institutional investor sentiment towards cryptocurrencies, with altcoins like Solana (SOL) experiencing a surge in interest.
Solana Shines From Zero to Hero in Institutional Portfolios
Hedge funds and wealth managers are now allocating to Solana at a dramatic rate. CoinShares’ survey, based on responses from 64 investors with a combined $600 billion under management, found nearly 15% hold SOL. This marks a stark contrast to January’s survey, where none of the respondents had invested in the altcoin.
James Butterfill, Head of Research at CoinShares, attributes this rise to investors’ growing optimism for Solana’s growth potential. Ranked third with just under 15% of respondents agreeing, Solana is quickly gaining ground, up from over 10% in January.
Bitcoin Still Reigns Supreme, But Ethereum Loses Some Luster
While Bitcoin (BTC) remains the king of crypto in investors’ eyes, with 41% considering it to have the best growth outlook, Ethereum (ETH) seems to be losing some favor. Investor appetite for ETH has waned, with its score dropping from 35% in January to just over 30% in the latest survey.
Despite these individual fluctuations, the overall trend is positive. The survey found the percentage of cryptocurrency in investors’ portfolios has jumped to 3% – the highest weighting since the survey began in 2021. Notably, Butterfill attributes a portion of this rise to “institutional investors who finally had the ability to gain exposure to Bitcoin via the U.S. ETFs.”
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Regulation Remains a Hurdle for Crypto Entry
However, the road to widespread crypto adoption isn’t without obstacles. “Regulation remains stubbornly high” as a reason preventing some wealth managers and institutional investors from entering the market, according to Butterfill. This highlights the need for clearer regulatory frameworks to foster trust and participation.
While regulatory uncertainty persists, investors are increasingly recognizing the potential of digital assets. The survey also found that exposure to distributed ledger technology is the main reason investors are buying crypto, and the percentage who see crypto as “good value” has risen significantly. This, coupled with diminishing concerns over volatility and custody, paints a promising picture for the future of cryptocurrencies.
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