Solana ETFs Experience Inflow Disruption Amid Investor Withdrawals

Solana ETF Inflows Disrupted

Solana's previously bullish momentum in the ETF market has hit a snag. The U.S.-listed spot Solana exchange-traded funds (ETFs), which had been attracting significant investment since late October, experienced a notable outflow on Friday. According to SoSoValue, the ETFs saw a cumulative withdrawal of $8.10 million, the first since their launch on October 28.

While investors injected over $5 million back into these funds on Friday, the trend reversed by Monday, with redemptions reaching $13.55 million. This shift ends a 21-day streak of continuous inflows, setting Solana ETFs apart from their bitcoin and ether counterparts, which suffered massive outflows amid November's market turmoil.

Institutional Interest Remains

Despite this pause, since their inception, Solana ETFs have amassed net inflows exceeding $600 million. The Bitwise Solana ETF (BSOL) alone has attracted over $540 million, while Grayscale's GSOL has added nearly $80 million. This contrasts sharply with the $3 billion and $1 billion withdrawals from BTC and ETH ETFs, respectively, during the same period.

The strong performance of SOL ETFs underscores growing institutional interest in alternatives beyond traditional cryptocurrencies like BTC and ETH. Highlighting this trend, Franklin Templeton filed with the SEC on November 21 to launch a Solana ETF, indicating persistent demand for investment vehicles offering exposure to Solana's blockchain without direct ownership.