Solana (SOL) is gaining significant traction among institutional investors, who are increasingly drawn to its potential. This trend suggests that Solana might be the next crypto token to launch its Spot ETF, which could have a substantial impact on its price.

Solana Investment Funds See Record Inflows

According to CoinShares' latest report, Solana investment products have seen a significant year-to-date (YTD) net inflow of $29 million. Last week, these funds recorded net inflows of $8 million, and this month alone, they have seen net inflows of $19 million. This surge in demand highlights the strong interest in Solana among institutional investors.

Solana's Popularity Strengthens Case for Spot ETF

The significant demand for Solana among institutional investors strengthens the case for SOL as the next crypto asset to have its own Spot ETF following the approval of Spot Ethereum ETFs. Fund issuers are likely to consider the popularity of other crypto tokens when deciding which Crypto ETF to apply for next, and Solana is undoubtedly the clear favorite.

Institutional Interest in Solana

The demand for Solana among institutional investors is evident, given notable institutions like Pantera Capital actively bidding and purchasing discounted SOL tokens from FTX's bankruptcy estate. Brian Kelly, founder of BKCM, has also predicted that a Solana Spot ETF is likely next in line, considering that Bitcoin, Ethereum, and Solana are the 'Big 3' for this cycle.

Solana's Future Prospects

Asset manager Franklin Templeton has backed the Solana narrative, predicting that the crypto token will soon become the third-largest crypto token by market cap behind Bitcoin and Ethereum. Bloomberg analyst James Seyffart has also weighed on the possibility of a Solana ETF being next, stating that this fund will see more demand than other digital assets besides Bitcoin and Ethereum.

Digital Asset Products See Third Consecutive Week of Inflows

Last week was a good one for crypto asset investment products, with $1.05 billion flowing into these funds. Most of these inflows went into Bitcoin investment products, which recorded net inflows of $1.01 billion. Ethereum recorded $36 million in net inflows, the highest inflow since March, likely in response to the approval of Spot Ethereum ETFs. Besides Solana, Litecoin, XRP, and Chainlink also saw notable flows, with $2.8 million, $400,000, and $600,000 flowing into these crypto assets, respectively.