Institutional investors have allocated more than $1 million to cryptocurrency investment products offering them exposure to Solana ($SOL), despite the market seeing “broad negative sentiment” that has seen crypto investment products experience outflows.
According to CoinShares’latest Digital Asset Fund Flows report, investment products focusing on Solana saw $700,000 of inflows last week, adding to the $400,000 seen the week before for a total of $1.1 million so far in December.
The firm’s report notes that last week cryptocurrency investment products saw $30 million of outflows over lingering uncertainties surrounding the collapse of businesses linked to FTX and the Federal Reserve’s continuing hawkish rhetoric.
Investment products focusing on Bitcoin ($BTC) saw outflows of $17.5 million over the past week, while products shorting the flagship cryptocurrency saw inflows of $1.1 million.
Solana rival Ethereum ($ETH) experienced its fifth consecutive week of outflows that totaled $9.1 million, the report adds.Total assets under management for crypto investment products fell to $22.3 billion.
Solana’s price was heavily affected by FTX’s collapse. FTX CEO Sam Bankman-Fried, who was arrested earlier this week in the Bahamas, is a well-known $SOL supporter and has invested in various projects on the cryptocurrency’s ecosystem. His involvement in these projects has affected investors’ confidence in them in the wake of FTX’s collapse. $SOL is, at the time of writing, trading close to the $12 mark after hitting an $11 low last month.
Data from on-chain analytics firm Santiment suggests that the fear surrounding Solana could lead to a rebound in its price. This could happen if short sellers start to exit their positions, triggering a short squeeze.
A short squeeze occurs when the price of an asset rises rapidly and unexpectedly. As short sellers close their positions, the influx of buy orders can further drive up the price of the asset.
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