Buyers returned briefly with over $5 million in inflows, but that recovery was reversed Monday as funds processed redemptions worth $13.55 million.
Solana News
Solana exchange-traded funds experienced their first outflows since launching Oct. 28, recording cumulative redemptions of $8.10 million on Friday as bulls hit pause after pumping millions into the products throughout November.
Buyers returned briefly with over $5 million in inflows, but that recovery was reversed Monday as funds processed redemptions worth $13.55 million. The pause in demand follows a three-week inflow trend that made Solana ETFs stand out compared to Bitcoin and Ethereum counterparts, which bled billions during November's market rout.
Since their debut, Solana ETFs have registered net inflows of over $600 million, with Bitwise’s Solana ETF alone drawing in over $540 million. Grayscale's GSOL is a distant second, having seen net inflows of nearly $80 million since launch.
During the same timeframe, crypto investors pulled out over $3 billion and $1 billion from Bitcoin and Ethereum ETFs, respectively. The outperformance demonstrates growing institutional interest beyond Bitcoin and Ethereum as investors seek exposure to alternative layer-1 blockchains.
On Nov. 21, Franklin Templeton officially filed with the SEC for a Solana ETF, citing continued demand for alternative investment vehicles that offer exposure to the programmable blockchain's native token without having to own it. The filing signals further institutional appetite for Solana products despite recent outflow activity.
The broader context shows Solana has faced selling pressure in recent weeks alongside Bitcoin's retreat from record highs in October. However, Solana climbed 12% on Tuesday to $139.56, suggesting demand remains resilient despite temporary ETF outflows.
Spot ETFs provide direct exposure by holding underlying assets, while the recent redemptions may reflect profit-taking or portfolio rebalancing rather than fundamental concerns about Solana's long-term prospects. The ETF structure allows institutional investors to gain cryptocurrency exposure through regulated vehicles familiar to traditional finance channels.
Bitwise's BSOL offers staking rewards alongside price exposure, differentiating it from standard spot products. The staking feature has attracted significant capital as investors seek yield generation in addition to potential price appreciation from the Solana ecosystem's continued development and adoption.
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