- Spot Solana exchange-traded funds (ETFs) launched in the U.S. have drawn strong investor demand despite a recent price drop of the SOL token.
- Solana ETFs recorded a combined weekly inflow of $421 million, with Bitwise’s Solana ETF attracting $199 million.
- The SOL price fell 20% in the week following the ETFs’ debut, underperforming Bitcoin and Ether.
- Bitwise’s Solana ETF offers a low management fee of 0.20%, contributing to its rapid growth compared to Grayscale’s Solana Trust.
- Grayscale’s Solana Trust pulled in $2.2 million in inflows after entering the market with $102 million in assets under management.
The introduction of U.S.-based spot Solana exchange-traded funds (ETFs) last week met solid investor interest despite a significant decline in the price of SOL, Solana’s native token. The ETFs launched amid a generally weak crypto market, signaling strong demand for the new investment products.
According to recent data, Solana-related exchange-traded products attracted $421 million in net inflows last week. Bitwise’s Solana ETF (BSOL) accounted for the majority of this amount, receiving about $199 million in new investments after starting with $223 million in seed capital. The total inflow made BSOL the top-performing crypto ETF during the past week, ahead of other notable funds like BlackRock’s iShares Bitcoin Trust.
The SOL token itself had traded at a high of $205 before the ETF launch but dropped 20% to around $165 over the following week. This pullback was sharper than the declines experienced by Bitcoin and Ether, which decreased by about 6% and 12%, respectively. The demand for Solana ETFs was not reflected in the token’s price performance.
Vetle Lunde, head of research at K33, described the ETF’s debut week as “very solid,” highlighting the strong investor interest despite broader cryptocurrency fund outflows. He noted that Bitwise’s lower management fee of 0.20%, compared to Grayscale’s 0.35% for its Solana Trust (GSOL) and even higher fees on other products, contributed to BSOL’s success.
Grayscale’s Solana Trust had a relatively modest inflow of $2.2 million but started with $102 million in assets under management after converting from a closed-end fund. The lower fees and first-mover advantage of BSOL have driven its fast growth, whereas GSOL’s higher fees and later launch limited its initial inflows.
For more details on fund flows and data, visit Farside Investors data.
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