In an unexpected twist, Solana’s remarkable streak of consistent inflows into its exchange-traded funds (ETFs) hit a snag this Wednesday, with a notable net outflow of $8.1 million reported by SoSoValue. This disruption not only marked the first negative performance since the launch of these products earlier this month but also abruptly ended a solid 21-day run of accumulation, positioning Solana as a leading player in the rapidly evolving world of non-Bitcoin asset ETFs.
Interestingly, the outflow was largely influenced by the 21Shares Solana ETF (TSOL), which faced a staggering withdrawal of over $34 million in just a single session. Since its launch, TSOL has now experienced a cumulative outflow of $26 million, leaving it with net assets totaling $86 million. While this sharp decline from one issuer negatively impacted overall performance, other Solana ETFs managed to absorb much of the outflows, demonstrating resilience in capital attraction.
Leading the charge for inflows was the Bitwise Solana Staking ETF (BSOL), which brought in an impressive $13.33 million, lifting its total assets to around $527.79 million. Additionally, the Grayscale Solana Trust added $10.42 million, while Fidelity’s FSOL fund contributed $2.51 million. Collectively, Solana ETF products now hold nearly 6.83 million SOL tokens valued at approximately $964 million, signifying continued institutional interest, even amidst this short-lived setback.
Despite this recent dip, the overall picture for Solana ETFs remains robust. For the week, the funds ended with a substantial net addition of nearly $103 million, culminating in cumulative inflows of $613.22 million and total net assets of $917.99 million. Remarkably, November alone has yielded $414.01 million in inflows, dwarfing October’s debut total of $199.21 million.
In contrast to the volatile Solana environment, newly launched XRP products are enjoying unprecedented momentum, with no outflow sessions recorded. On Wednesday alone, XRP ETFs recorded an additional $21 million in combined inflows, enhancing their total to $643 million. The Bitwise XRP ETF spearheaded this growth with $7.4 million, closely followed by Canary’s XRPC, Franklin Templeton’s XRPZ, and Grayscale’s GXRP, each contributing significantly to this surge.
Meanwhile, Dogecoin ETFs have fallen short of expectations. The New York Stock Exchange’s approval of Grayscale’s Dogecoin Trust ETF was lukewarm, debuting at merely $11 million, a stark contrast to initial projections.
As the overall cryptocurrency market continues to grapple with mixed performance, Bitcoin ETFs remain a beacon of strength, adding $21.12 million on November 26, pushing total cumulative inflows to $57.63 billion with robust daily trading volumes eclipsing $4.5 billion. On the other hand, Ethereum ETFs have seen improving daily activity, crossing above $60 million in inflows over three consecutive sessions, though they face sustained net outflows of $1.50 billion for November as investors pivot towards Bitcoin, Solana, and XRP.
Expert analysts are closely watching Solana’s ETF performance, noting that the unusual outflow aligns with a broader sense of market caution and declining on-chain activity. Data from Nansen reveals a 6% decrease in active Solana addresses and a significant 16% drop in network fees within the past week. Furthermore, the total value locked (TVL) on the Solana network has plummeted 32% from its September peak of $13.23 billion, currently resting around $9.1 billion.
This downturn is reflected across major Solana protocols, including Jito, Jupiter, Raydium, and Sanctum, each experiencing double-digit declines in TVL amid the ongoing market turmoil.
Technical analyses suggest a continued sense of apprehension. Solana is currently trading within a bearish continuation pattern after retracting from earlier highs around $170. Traders are keeping a vigilant eye on the $140–$145 zone, where a breach could signal further declines towards lower support levels.
Market strategists interpret the divergence between the strong ETF inflows and the weakening spot prices as indicative of the broader tensions within cryptos, where institutional accumulation persists even as retail investors adopt a more cautious approach. As we look ahead, the future remains uncertain for Solana, poised to remain sensitive to the ever-changing landscape of market volatility and ETF flow consistency.
As cryptocurrency enthusiasts and investors, what are your thoughts on Solana’s journey ahead? Will it reclaim its momentum amidst these challenges, or are we witnessing a broader shift in market dynamics? Join the conversation and let us know where you think the market will head next!