The SOL token is now the fifth-largest cryptocurrency in the world by market cap overtaking ADA. During the latest correction state of the cryptocurrency market, the SOL token has managed to retain its value for the most part. However, the surge in SOL prices is not created by mere market speculation. The main driving force behind the SOL token is the increasing institutional interest.
According to data from CoinShares, during the last week, the total amount of investment vested in SOL tokens from institutional investors has reached $43 million. It is worth noting that during last year, the total amount of institutional interest raised in Bitcoin was valued at $6 billion.
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The latest report published by CoinShares reveals that the institutional investors have continued to stake positions in Bitcoin and Ethereum tokens despite the recent decline of the cryptocurrency market. The data from the report declares that institutional investors raised $150 million in Bitcoin during last week. For Ethereum, the amount of inflow is $41.1 million during the same duration.
Despite the pushback from regulators, Bitcoin has managed to stake $6.6 billion in institutional interest as per the year-to-date index. For Ether-related products, the same metric accounts for $1.17 billion. It is worth noting that the majority of the commercial interest vested in Bitcoin and Ethereum is intended for the derivatives and product funds market.
Bitcoin ETFs and Crypto Market
After China imposed a ban on Bitcoin mining during July, the hashrates of the top coin dropped to near zero. However, the slack was picked by mining rigs in nations like Russia, Kazakhstan, the USA, and other countries. Furthermore, Bitcoin was able to register another ATH near $69K last month due to the approval of first-ever Bitcoin ETFs in the United States.
The statistics from the CoinShares report show that the amount of institutional interest in Bitcoin-pegged ETF created a 90% additional inflow in the digital asset market. The aforementioned statistics declare that institutional investors are ready to place their bets on cryptocurrencies, and retail investors have also continued to use the digital asset market as a hedge against inflation.