According to CoinShares, institutional investors are increasingly diversifying their portfolios by showing interest in a wider range of altcoins, with Solana (SOLUSD) attracting attention from hedge funds and wealth managers.

James Butterfill, the Head of Research at the asset management firm, notes that Solana has captured investor interest based on a study involving 64 investors, with nearly 15% of them investing in SOL.

Butterfill observes a diminishing significance of XRP, although there have been inflows of approximately $1.3 million related to XRP assets. Solana currently ranks third in terms of growth, with bitcoin (BTCUSD) being the top choice for 41% of respondents, followed by Ether, which has the backing of 30% of respondents, despite experiencing a decline.

The percentage of cryptocurrencies in investors' portfolios is expected to increase by 3%, a significant rise from 1.3% at the beginning of the year, according to Butterfill.

Institutional investors, particularly those gaining exposure to bitcoin through US ETFs, dominated the market, with 55%.