Solana News Update: Solana ETFs Draw $421 Million in Investments Despite 8% Price Drop, Revealing a Gap in Institutional and Market Sentiment

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Bitget-RWA2025/11/04 06:12

By:Bitget-RWA

- Solana (SOL) dropped 8% to $167, wiping out 2024 gains despite $421M inflows into new U.S. spot-based ETFs. - ETF inflows contrasted with Bitcoin/Ethereum outflows ($543M and $210M), highlighting institutional rotation toward Solana's 7% staking yields. - Technical indicators show bearish momentum (23:1 long liquidation ratio), with analysts warning of potential 30% correction to $115. - Bitwise's 0.20% fee ETF (BSOL) attracted $197M in four days, outperforming BlackRock's Bitcoin ETF but failing to stab

Solana (SOL) dropped by 8% on Thursday, continuing its downward trend for the week even after the launch of the first U.S. spot-based

Solana

ETFs, which attracted more than $421 million in investments, as reported by an

Economic Times report

. This decline wiped out all of Solana’s gains for the year, with the token now trading at $167, marking a 17% decrease over the past week, according to a

TradingView analysis

. Experts caution that if Solana cannot recover crucial support levels, it could face an additional 30% drop, potentially sending its price down to $115, the TradingView article noted.

The Bitwise Solana Staking ETF (BSOL) led the influx, pulling in $197 million within its first four days, while the Grayscale Solana Trust (GSOL) saw $2.2 million in new funds, according to a

TradingView U.Today report

. Despite these inflows, Solana’s price continued to decline, highlighting a disconnect between institutional buying and short-term market sentiment, as pointed out in a

Yahoo Finance report

. On-chain activity also influenced sentiment, with a significant transfer of 1.1 million

SOL

from Jump Crypto to

Galaxy Digital

fueling speculation that the firm was shifting its focus to

Bitcoin

, according to a

CoinDesk article

Solana News Update: Solana ETFs Draw $421 Million in Investments Despite 8% Price Drop, Revealing a Gap in Institutional and Market Sentiment image 0

ETF inflows stood in stark contrast to the outflows seen from Bitcoin and

Ethereum

funds. Bitcoin ETFs experienced $543.59 million in withdrawals, while Ethereum ETFs saw $210.43 million leave, largely due to significant redemptions by BlackRock, as detailed in a

Coinotag report

. This movement of capital underscores a rising institutional interest in high-performance blockchains such as Solana, which boasts faster transaction speeds and staking returns of about 7%, as a

Coinotag follow-up

explained.

Technical signals indicate the market is at a pivotal point. Solana has slipped below its 200-day exponential moving average, and derivatives data reveal a bearish trend, with long positions being liquidated at a rate nearly 23 times higher than shorts in the last 24 hours, according to an

FXStreet analysis

. Analysts such as Ali Martinez warn that if Solana falls below $180, it could quickly drop to $158, and if that level fails, potentially down to $115, as highlighted in the TradingView analysis. On the other hand, Bitwise CEO Hunter Horsley remains optimistic, arguing that ETF investors are focused on the long term and that Solana’s involvement in stablecoin and tokenization infrastructure positions it well for future growth, according to the TradingView coverage.

Although the short-term outlook remains uncertain, the introduction of these ETFs marks a step forward in crypto market maturity. Bitwise’s BSOL, with a 0.20% management fee—lower than Grayscale’s 0.35%—drew nearly ten times the inflows of BlackRock’s Bitcoin ETF in its debut week, as reported by Yahoo Finance. Despite this achievement, price stability has yet to follow, as traders remain wary amid ongoing market volatility, the Economic Times report noted.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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