Institutional Inflows in 2023: Solana, XRP, and a Top Ethereum Competitor Take the Lead, According to CoinShares Data

CoinShares, a digital assets management firm, reports that institutional investors are showing strong interest in XRP, Solana (SOL), and another Ethereum (ETH) competitor in the early months of 2023.

CoinShares' latest Digital Asset Fund Flows report reveals that institutional investors have allocated more capital to Solana, XRP, and Cardano (ADA) this year than any other alternative cryptocurrency, surpassing Ethereum (ETH).

In the past week alone, SOL attracted $3.7 million in inflows, while XRP received $0.4 million (ADA recorded no significant inflows). These three altcoins have collectively secured $59 million, $15 million, and $6 million in year-to-date inflows, outperforming other non-ETH altcoins.

In contrast, Bitcoin (BTC) attracted $260 million in inflows over the same period, while Ethereum currently registers a net outflow of $111 million.

Notably, the cryptocurrency market experienced its third consecutive week of inflows last week, with digital asset investment products garnering a total of $15 million in new investments. However, trading volumes remained 27% below the 2023 average.

There is still a regional disparity, with minimal inflows into the United States, whereas Europe witnessed net inflows of $7 million last week, with Sweden being the only country to record outflows.

CoinShares further highlights that XRP has enjoyed an impressive streak of 25 consecutive weeks with positive institutional inflows.

The past week, however, wasn't favorable for altcoins as a whole, with Tezos, Litecoin, and Chainlink experiencing outflows of $0.25 million, $0.28 million, and $0.31 million, respectively. XRP managed to buck the trend with modest inflows totaling $0.42 million. This milestone marks the 25th consecutive week of institutional investment inflows into XRP this year.

These sustained inflows underscore strong support from the investment community, particularly in light of successful legal challenges against the SEC (U.S. Securities and Exchange Commission).

Oct 17, 2023