Solana (SOL) Becomes Primadona Among Institutional Investors

Solana's crypto asset. (Photo; Doc. MarketPeriodical)

JAKARTA - Solana (SOL) has become an asset that has attracted the attention of institutional investors. Recent reports from CoinShares show that nearly 15% of wealth managers and hedge funds have selected Solana as part of their portfolio, marking a significant increase from previous surveys that did not record investments in these altcoins.

James Butterfill, Head of Research at CoinShares, revealed that exposure to altcoins like Solana is increasingly widespread among institutional investors. "We are witnessing a significant expansion of exposure to altcoins, and Solana is in the spotlight with a marked increase in allocations," said Butterfill.

A survey involving 64 investors with combined assets worth $600 billion (approximately IDR 9.723 trillion) shows a clear shift in preference from Bitcoin and Ethereum, which are still held by more than 25% and nearly 25% of respondents, respectively. However, Solana is now gaining a place in investor hearts, with 14% of respondents expressing optimism for its potential growth, an increase from 12% in previous surveys.

Bitcoin is still a leading asset with 41% of investors optimistic about its growth, although this figure has decreased from previous surveys. Ethereum, on the other hand, experienced a decline in confidence, with only about 30% of respondents optimistic, down from 35%.

The increase in interest in Solana is driven by significant technological innovation and market expansion. Digital assets now occupy 3% of the average investment portfolio, the highest number since the survey began in 2021. This increase is largely due to the launch of the Bitcoin spot ETF in the US, which makes it easier for institutional investors to get direct exposure to Bitcoin.

Although institutional capital flows to crypto like Solana show a positive trend, there are still challenges that must be overcome. Regulations are one of the main concerns, with many investors considering them as a major barrier to further investment. Butterfill added, "Regulation is still a major obstacle, but a decrease in concerns about volatility and storage is good news."

Investors are also increasingly looking at crypto as an attractive investment, with percentages considering digital assets a "good value" rising from less than 15% to more than 20% between January and April, driven by increasing client demand and encouraging price trends.