- Solana ETFs see $323M inflow while SOL declines 17%.
- Institutional interest diverts from Bitcoin and Ethereum, favoring Solana.
- ETFs include staking, boosting Solana’s on-chain economics alignment.
Solana ETFs have garnered $323 million in inflows over the past week, led by major firms, even as Solana’s price dropped 17%.
These inflows signify a shift in institutional focus, contrasting with Bitcoin and Ethereum ETF outflows, potentially affecting market dynamics and showcasing Solana’s rising institutional appeal.
Solana ETFs have garnered $323 million in inflows over the past eight days, led by major asset management firms. Despite this influx, the price of SOL has dipped 17%, highlighting a unique scenario in the cryptocurrency market.
ETF giants like Bitwise, Grayscale, and Fidelity have updated their filings to include staking provisions. This aligns their offerings with Solana’s staking model, distinguishing them from other digital assets experiencing significant outflows. As noted by James Seyffart, ETF Analyst at Bloomberg,
“All seven spot Solana ETF issuers updated their S-1 filings this week to include staking, making them structurally aligned with Solana’s on-chain economics.”
Bitcoin and Ethereum ETFs witnessed heavy outflows, with BTC losing $187 million and ETH $136 million in the same period. This shift indicates a sizable institutional interest in Solana over more established cryptocurrencies.
The flow of funds from Bitcoin and Ethereum into Solana reflects a strategic realignment by institutional investors towards decentralized finance assets that integrate on-chain staking mechanisms. Such transitions have historically resulted in short-term volatility for other assets. Solana’s current uptake could lead to further investment and price adjustments in the near future. Analysts predict that the inclusion of staking in ETFs may further enhance Solana’s appeal. This move mirrors early institutional adoption patterns witnessed when Ethereum gained prominence.
