Institutional investors are increasingly diversifying their portfolios to include altcoins like Solana (SOL), according to a report by CoinShares. The report, based on a survey of 64 investors with a combined $600 billion in assets under management, indicates a "dramatic increase in allocations" to Solana from wealth managers and hedge funds.

The survey revealed that nearly 15% of respondents had invested in SOL, a significant increase from CoinShares' January survey, which showed none of the respondents holding the altcoin. This shift in investment strategy also saw a decline in holdings of XRP, with none of the surveyed investors currently holding the cryptocurrency.

Bitcoin (BTC) remained the top choice for growth potential among investors, with 41% of respondents believing it had the best growth outlook. Ether (ETH) came in second, with just over 30% of respondents bullish on its growth. Despite the drop in ETH's score since January, investor appetite for cryptocurrencies has increased overall, with the percentage of cryptocurrency in investors' portfolios rising to 3%, up from 1.3% in January.

The report also highlighted the barriers to entry for institutional investors looking to enter the crypto market, with regulation cited as a major hurdle. However, the survey found that concerns over volatility and custody issues are diminishing, indicating a growing confidence in the asset class among institutional investors.