Institutional investors surveyed by Coinbase and EY-Parthenon were more likely to own XRP than Solana in January, according to a report published by the firms on Tuesday.
Bitcoin and Ethereum were widely held by 352 respondents based worldwide, yet 34% of them had allocated to the Ripple Labs-linked token compared to 30% for Solana. Around 25% of institutional investors also owned Dogecoin.
Tuesday’s report noted that a majority of institutional investors held just one or two cryptocurrencies beyond Bitcoin and Ethereum, which U.S. investors can easily get exposure to through exchange-traded funds launched last year.
While a number of asset managers have filed applications for XRP and Solana ETFs, and analysts think they have a solid chance of receiving approval, most investors have few opportunities to gain exposure to the altcoins using a traditional brokerage account.
When it comes to registered vehicles that hold crypto as an underlying asset, most institutions said they prefer products resembling ETFs. Although around one and three institutional investors had allocated to XRP or Solana, 29% preferred holding assets in a digital wallet instead.
Despite this preference, Coinbase and EY-Parthenon’s survey found that an investor’s location had little impact on which altcoins they had allocated to. Though ETF applications have garnered excitement, the authors suggested that ETFs in the U.S. may not influence ownership trends much.
Still, 68% of respondents said they would likely invest in new crypto exchange-traded products that track a single asset. Coinbase and EY-Parthenon used XRP and Solana as examples.
The survey’s snapshot of institutional trends concluded on Jan. 24, four days after President Donald Trump’s inauguration. .
Since then, Solana has relinquished the entirety of its post-election gains, while XRP still changes hands at several times the value that it did on Election Day last year.
Analysts say that Trump’s crypto-friend stance means more for XRP than Solana because the asset’s associated business model faced existential threats from the U.S. Securities and Exchange Commission, namely the agency’s lawsuit against Ripple Labs over XRP sales.
The Commission has adopted a collaborative approach to crypto firms under Trump’s watch, but 53% of respondents highlighted crypto’s “uncertain” regulatory backdrop as a concern.
When it comes to which digital assets are commodities versus securities, 49% of respondents said it was the most important area for clarity. Half cited crypto custody rules.
The SEC has created a Crypto Task Force to establish clearer rules, but lawmakers are also weighing a crypto markets structure bill on Capitol Hill. That bill would give the Commodity Futures Trading Commission oversight over the emergent industry.
Edited by James Rubin
