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Solana Spot ETFs See $8.1M Outflows, Ending 21-Day Inflow Streak

Solana ETFs See $8.1M Outflow After 21 Days of Inflows Amid Competitive and Market Challenges

  • Spot Solana ETFs experienced an $8.1 million outflow, ending a 21-day inflow run.
  • A $34.4 million redemption from 21Shares‘ Solana fund caused most of the outflows.
  • Other spot Solana ETFs like Bitwise and Grayscale saw inflows partially offsetting the outflows.
  • Solana is viewed as a higher-risk (“high-beta”) altcoin compared to alternatives like XRP.
  • The total assets in Solana ETFs are about $915 million, representing roughly 1.15% of its $79 billion market cap.

U.S. spot Solana exchange-traded funds (ETFs) recorded an $8.1 million outflow on Wednesday, marking their first net withdrawal after a 21-day streak of inflows since the funds launched. This decline mainly resulted from a $34.4 million redemption from 21Shares‘ Solana ETF, known as TSOL. Other funds noted inflows, including $13.3 million for Bitwise‘s BSOL and $10.4 million for Grayscale‘s GSOL, according to data from SoSoValue.

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Despite the withdrawal from ETFs, Solana’s trading price remained around $141, increasing about 3.6% over the past 24 hours based on CoinGecko data. Total assets managed by Solana ETFs stand near $915 million, which is approximately 1.15% of Solana’s overall market capitalization of $79 billion.

Industry perspectives suggest that some investors might be reallocating away from higher-risk (“high-beta”) altcoins like Solana toward cryptocurrencies perceived as having stronger adoption or clearer regulatory positions. Rachel Lin, CEO and Co-Founder of SynFutures, explained that Solana may face competitive risks in the layer-one blockchain space despite its robust ecosystem. She also noted that Solana investors often respond sharply to changing market sentiment, exiting positions quickly.

Comparatively, other altcoin ETFs exhibit different trajectories. The XRP ETF has maintained positive net inflows since its debut on November 14. The recently launched Dogecoin spot ETF holds $6.5 million in assets, a small fraction (0.03%) of Dogecoin’s $23 billion market cap. The Litecoin ETF, available since October 28, has had no outflows but remained stable since mid-November.

Solana’s recent price trend shows a 30-day performance decline of about 30% and a drop greater than 50% from its all-time high of $293.31. On the prediction platform Myriad, users estimated a 92% chance that Solana would not reach its all-time high again by the end of the year.

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