Solana (SOL), a rival to Ethereum (ETH), is experiencing a significant surge in professional investor allocations this year, according to a recent survey conducted by CoinShares, a digital assets manager. The survey involved 64 investors from around the world who collectively manage $600 billion in assets. The respondents included various types of investors such as wealth managers, hedge funds, institutions, family offices, financial advisors, and individual investors.
CoinShares explained that investors have been diversifying their exposure to alternative cryptocurrencies, and Solana in particular has seen a substantial increase in allocations. The survey revealed that this was driven by a few large investors who carried more weight in the results. On the other hand, XRP experienced a significant decline, with none of the survey respondents currently holding it.
According to the survey, digital assets accounted for an average of 3% of the respondents’ portfolios, marking the highest weighting since CoinShares began its survey in 2021. The firm attributed this increase, in part, to institutional investors gaining exposure to Bitcoin through US ETFs.
CoinShares also highlighted that some investors who have not invested in digital assets cited regulation as the main factor influencing their decision. The survey indicated that there are still significant barriers to entry for certain investor groups, particularly those in the wealth management or institutional space. However, fewer investors believe that digital assets lack a fundamental investment case.
At the time of writing, SOL is trading at $135.12, experiencing a decrease of over 6% in the past 24 hours. It currently holds the fifth position in terms of market capitalization.
Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.
