Institutional Investors Prefer Solana over XRP

Institutional Investors Prefer Solana over XRP

CoinShares, a digital asset management institution, has observed a significant increase in the amount of Solana (SOL) in investors' portfolios compared to the beginning of 2024.

Investor Interest in Solana

CoinShares collected survey respondent data from 64 hedge funds and institutional investors with a total AUM of US$600 billion regarding the cryptocurrencies present in their portfolios.
"Institutional investors appear to be expanding their exposure to altcoins, including Solana, which has seen a drastic increase in allocation from wealth managers and hedge funds," said CoinShares Chief Researcher, James Butterfill.


Image: January 2024 survey results (black dots) vs. April 2024 survey results (blue bars). Source: CoinShares.

Nearly 15% of surveyed investors stated they had invested in SOL, a significant increase from CoinShares' January 2024 survey, which showed no respondents holding investments in the cryptocurrency.

The survey results noted a significant decrease in XRP, with no survey respondents holding XRP in their portfolios compared to the January 2024 survey.

Image: Most compelling growth survey January 2024 (black dots) vs. April 2024 survey. Source: CoinShares.

Meanwhile, SOL ranked third when sorted by "most compelling growth potential," with nearly 15% of respondents agreeing. Bitcoin remained in the top position, with 41% agreeing that Bitcoin has the best growth potential.

Ethereum (ETH) held the second position with only about 30% of respondents optimistic about its growth, down from the previous survey at 35%.

Conclusion

the data from CoinShares' surveys indicate a shifting trend among institutional investors towards Solana (SOL) while XRP seems to be losing favor. With a substantial increase in SOL holdings among surveyed investors and a simultaneous decline in XRP allocations, it's evident that institutional interest is gravitating towards Solana.

This preference for SOL underscores a broader pattern of institutional investors expanding their exposure to altcoins, as highlighted by CoinShares Chief Researcher James Butterfill. Despite Bitcoin maintaining its dominance in terms of perceived growth potential, Solana emerges as a notable contender, ranking third in investors' perceptions of compelling growth prospects.

This shift in sentiment towards Solana underscores its rising prominence in the cryptocurrency landscape, suggesting that institutional investors are increasingly recognizing its potential for long-term growth and value.

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