Institutional Investors Increasing Exposure to Altcoins like Solana, CoinShares Survey Finds

Institutional investors are showing a growing interest in alternative cryptocurrencies, with a particular focus on Solana (SOLUSD) according to a recent report by CoinShares. The asset manager’s survey of 64 investors with a combined $600 billion in assets under management revealed a significant increase in allocations to Solana, with nearly 15% of respondents now holding the altcoin compared to none in January.

James Butterfill, CoinShares’ head of research, noted that investors are becoming more optimistic about Solana’s growth potential, ranking it third in terms of compelling growth outlook behind Bitcoin and Ether. Meanwhile, XRP has seen a decline in investor interest, with none of the survey respondents holding the cryptocurrency in the latest survey.

Despite the positive sentiment towards cryptocurrencies, institutional investors still face significant barriers to entry into the asset class, with regulation cited as a major obstacle. However, the survey also found that the percentage of cryptocurrency in investors’ portfolios has increased to 3%, the highest weighting since the survey began in 2021.

Overall, the data suggests a growing interest in alternative cryptocurrencies among institutional investors, driven by positive price momentum and increasing client demand. While challenges remain, the survey indicates a shift towards greater acceptance of digital assets in traditional investment portfolios.