According to CoinShares, institutional investors are increasingly diversifying their portfolios to include altcoins, notably Solana (SOL), which has witnessed a substantial rise in allocations from wealth managers and hedge funds.
Based on a survey of 64 investors managing a combined $600 billion in assets, CoinShares’ head of research, James Butterfill, noted a significant uptick in optimism for Solana among respondents. Nearly 15% of investors surveyed reported investments in SOL, marking a notable increase compared to previous surveys.
In contrast, holdings of XRP (XRP) have declined significantly, with none of the surveyed investors currently holding the asset compared to previous surveys.
Bitcoin (BTC) remains the top choice for growth potential among investors, followed by Ether (ETH). However, Solana ranks third in terms of the most compelling growth outlook, with just under 15% of respondents expressing bullish sentiment.
The survey indicates a rise in the percentage of cryptocurrency in investors’ portfolios, reaching 3% compared to 1.3% in January. This increase is attributed in part to institutional investors gaining exposure to Bitcoin through U.S. ETFs.
While the overall sentiment toward crypto is positive, significant barriers to entry persist, particularly for wealth managers and institutional investors. Regulatory concerns remain a prominent deterrent, with regulations and politics perceived as top risks to crypto investments.
Despite barriers, client demand for crypto has risen, particularly during periods of positive price momentum. Additionally, the percentage of investors considering cryptocurrencies to be “good value” has increased, indicating growing confidence in the asset class.
While institutional interest in altcoins like Solana is on the rise, regulatory hurdles continue to pose challenges to broader adoption. Nonetheless, positive sentiment, increased portfolio weighting, and diminishing concerns regarding volatility and custody indicate a growing acceptance of cryptocurrencies within traditional investment circles.
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