Asset managers smitten

Exchange-traded fund (ETF) filings and listings by major asset management firms are propelling Solana forward faster than many forecasters had predicted.

The innovative blockchain platform known for supporting scalable and decentralised applications (dApps) is attracting some of the biggest names in finance.

These companies are increasingly seeing Solana as potential market leader in bridging the divide between traditional and crypto assets.

More importantly, they are putting words into action – a major boon for the SOL to USD price.

especially for clients exploring crypto investment strategies on this business insights platform.​

Invesco, which manages assets for high-net-worth individuals in more than 120 countries, recently filed a Form 8-A with the US Securities and Exchange Commission (SEC).

This document is considered the final step before publicly listing an offering.

New York-based multinational investment management holding company Franklin Templeton has also launched its first Solana ETF.

This fund, ticketed SOEZ, has set tongues wagging on Wall Street as it offers staking rewards.

These are attractive to investors seeking to capitalise on the Solana’s upward movement.

Bucking the trend

Net inflows into Solana ETFs have come as something as a surprise to analysts.

Historically, crypto market volatility has usually meant less interest in ETFs.

Yet financial institutions are bucking the trend by doubling down on ETF participation.

This is a strong indication that the asset instils confidence despite what is happening elsewhere in the crypto universe.

There are several reasons for this.

Firstly, a wider range of investors are exposed to Solana ETFs because they are traded on traditional stock exchanges.

Secondly, since the ETFs are publicly listed it means that shares can be bought and sold easily. The upshot of this is greater liquidity.

Lastly, SEC approval carries a lot of weight among investors, particularly those who are only just beginning to understand cryptocurrencies.

BitWise bet wisely

Early adoption of Solana has created a clear frontrunner as far as ETFs are concerned.

BitWise Asset Management is the world’s largest crypto index fund manager.

Long before the likes of Invesco and Franklin Templeton came along Bitwise recognised the inherent potential of the Solana ETF.

The key was to recognise institutional requirements before anyone else did.

It accordingly moved quickly to establish a structure with greater liquidity and an enhanced compliance framework.

Selling Solana as a throughput chain with exceptional scalability and durability also caught the attention of others in the platform’s ecosystem.

Primed for take-off

Through its ETF growth Solana is showing that permanent-inflow status is not nearly as far away as many analysts once thought.

Permanent inflows are the yardstick by which many offerings are measured.

Institutions increasingly regard Solana as a proven settlement layer for dApps, which themselves are finding favour among traditional investors.

There is now tangible transactional demand for decentralised finance (DeFi), Web3 projects and non-fungible token (NTF) marketplaces.

Solana has been able to present verifiable metrics to prove this, winning over scores of new investors whose default setting is to dismiss any sort of hype out of hand.

Overall sentiment is that if Solana can avoid any macro upheavals it will be perfectly-placed to gain an even greater foothold in the institutional environment.