Solana ETFs Defy Crypto Downturn With Steady Inflows
Solana has seen better days. Following the all-around market crash of October, the $SOL token is trading at a near 30% deficit over the last month, signaling a persistent weakness in the altcoin’s market resilience. $SOL is currently trading at $160.27, up by around 0.50% in the last 24 hours. Despite the modest intra-day increase, Solana is still under continuous selling pressure in higher timeframes, down by nearly 15% over the last week alone.
This is far from being a “Solana only” issue, however. Pretty much all altcoins have been bleeding over the past month, with notable examples like Dogecoin, SUI, and Cardano losing up to 40% of their values each.
That said, Solana is facing a real crossroad moment, according to our latest price prediction. Now facing a decline of over 40% from its previous high, Solana’s price is now hanging by a thread as investors try to hold on to a bull market.
Solana Spot ETFs Challenging the Market
While the altcoin market continues to suffer under pressure, institutional interest in SOL exposure has been surprisingly resilient, with newly launched Solana spot ETFs attracting steady inflows even as the token’s price struggles.
Usually, as seen in both the Ethereum and Bitcoin ETF markets, market activity of ETF shares tends to mirror their crypto asset counterparts. However, perhaps due to it being a novelty, Solana ETFs have been collecting consistent inflows that defy the broader market trend, with investors channeling capital into these products even as the underlying token continues to slide.
After bringing in over $200 million in deposits, BitWise and GrayScale Solana Spot Exchange-traded funds are registering another $100 million of $SOL inflows.
As a comparison, Bitcoin ETFs collectively registered over $900 million in outflows this week, while Ethereum ETFs saw over $400 million in withdrawals. While this is likely due to SOL ETF products being very new, it also shows a potential interest by institutional investors in “buying Solana’s dip”.
