Solana (SOL), a competitor to Ethereum (ETH), is experiencing a significant surge in allocations from professional investors this year, according to a recent survey conducted by CoinShares, a digital assets manager. The survey gathered responses from 64 investors worldwide who collectively manage $600 billion in assets. These investors include wealth managers, hedge funds, institutions, family offices, financial advisors, and individual investors.

CoinShares explained that investors are expanding their exposure to alternative cryptocurrencies, with Solana seeing a remarkable increase in allocations. The survey revealed that this is primarily due to a few large investors allocating significant amounts, which influenced the survey results. On the other hand, XRP has experienced a significant decline, with none of the respondents holding any XRP.

Digital assets accounted for an average of 3% of the respondents’ portfolios, the highest weighting since CoinShares began conducting the survey in 2021. The firm noted that institutional investors played a significant role in this increase, as they now have the opportunity to gain exposure to Bitcoin through US ETFs.

CoinShares also highlighted the regulatory concerns that have deterred some investors from entering the digital asset market. While they expected these concerns to decrease, the survey revealed that there are still significant barriers to entry, particularly for investors in the wealth management and institutional space. However, fewer investors now believe that digital assets lack a fundamental investment case.

At the time of writing, SOL is trading at $135.12. As the fifth-ranked cryptocurrency by market cap, it has experienced a decline of over 6% in the past 24 hours.

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