Institutional investors have restarted betting on the smart contract platform Solana ($SOL) through investment products focusing on the cryptocurrency. Their bets come weeks after the collapse of FTX and after SOL’s price crashed.
According to CoinShares’ latest Digital Asset Fund Flows report, investment products focusing on Solana saw inflows of $200,000 last week, making their second week of inflows after the collapse of FTX.
FTX CEO Sam Bankman-Fried 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 $14 mark after hitting an $11 low last month.
As CryptoGlobe reported, data from on-chain analytics firm Santiment has shown that the fear, uncertainty and doubt (FUD) surrounding Solana could lead to a rebound “until traders slow down their nearly unanimous bets against $SOL’s price.”
At a time in which there aren’t a lot of believers in the cryptocurrency, some suggested that a short squeeze could soon occur. A short squeeze triggers a rapid, unexpected rise in prices that then gains momentum as short sellers exit their positions. As sellers close their positions, the influx of buy orders further helps the price of the asset rise.
Notably, former Goldman Sachs executive Raoul Pal has explained why he believes this could be a great time to buy $SOL, the native token of the Solana blockchain, despite all the doom and gloom surrounding the Solana ecosystem in the wake of the collapse of FTX.
During an “Ask Me Anything” session streamed on the YouTube channel “Real Vision Crypto”, Pal had this to say about Solana, after detailing he likes Solana and the situation it’s currently in, and noting it’s “doing something very clever.”
Solana reminds me of Ethereum back in 2018 when it was down 97% and nobody cared. And that was a great bloody opportunity.
CoinShares’ report further details that over the past week digital asset investment products saw outflows of $7.5 million, although the figure is misleading as the “majority of the outflows were from short investment products.”
Long-only products, the report said, saw inflows of $3.3 million with BTC seeing inflows of $10.8 million. Ethereum ($ETH) investment products saw outflows of $4 million, while Polygon ($MATIC) investment products saw inflows of $300,000.
Featured image via Unsplash