Solana (SOL) Price: ETFs Record $199 Million in First Week While Token Drops 8%

TLDR

• U.S. Solana ETFs attracted $199 million in net inflows during their first week of trading, with Bitwise BSOL leading at $197 million
• Solana’s price fell 8% to $186.75 despite strong ETF demand, erasing gains for the year
• Bitcoin and Ethereum ETFs experienced outflows totaling $191.6 million and $98.2 million respectively on Friday as capital rotated to Solana products
• Jump Crypto transferred 1.1 million SOL tokens worth $205 million to Galaxy Digital, sparking speculation about asset reallocation
• Analysts predict first-year inflows could exceed $6 billion for new Solana ETFs from firms like VanEck and Fidelity

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U.S. Solana spot exchange-traded funds recorded $199 million in net inflows during their debut week. The funds attracted both institutional and individual investors seeking exposure to the blockchain asset.

Source: SoSoValue

Bitwise’s BSOL ETF dominated the market by drawing in $197 million over four days. Grayscale’s GSOL fund saw $2.2 million in new investments during the same period.

The ETF products continued their inflow streak for four consecutive days. Friday alone brought $44.48 million into Solana ETFs, pushing total assets under management to over $502 million.

Solana (SOL) Price

The strong ETF performance contrasts with the token’s price action. Solana dropped 8% to $186.75 on October 30, wiping out its gains for the year.

Jump Crypto made a major on-chain transfer during this period. The firm sent 1.1 million SOL tokens worth $205 million to Galaxy Digital.

The transfer fueled speculation about asset reallocation strategies. Some market observers suggested the firm was moving capital toward Bitcoin.

Capital Rotation From Bitcoin and Ethereum

Bitcoin and Ethereum ETFs experienced outflows while Solana products gained traction. Spot Bitcoin ETFs saw $191.6 million in daily net outflows on Friday.

The Bitcoin funds recorded larger outflows earlier in the week. Thursday brought $488.43 million in outflows, while Wednesday saw $470.71 million leave the products.

Spot Ethereum ETFs posted $98.2 million in outflows on Friday. The funds shed $184.3 million on Thursday and $81.4 million on Wednesday.

Vincent Liu, chief investment officer at Kronos Research, described the movement as capital rotation. He expects the trend to continue into next week.

Liu said Bitcoin and Ethereum investors are taking profits after strong runs. The rotation signals growing appetite for staking-driven yield opportunities.

ETF Impact on Supply Dynamics

Grayscale’s head of research, Zach Pandl, estimated the new ETFs could eventually control 5% of Solana’s circulating supply. This would represent approximately $5 billion in value.

CoinShares reported $381 million in Solana-focused ETF inflows for October. The year’s total reached $2.8 billion across all Solana investment products.

Early Solana holders have started selling their positions over the past month. However, these sales have been absorbed by the new regulated investment vehicles.

Bloomberg ETF analyst Eric Balchunas called this a clear indicator of institutional appetite. The ETFs are functioning as a liquidity sink that dampens short-term price swings.

Staking yields are attracting investors to these products. Grayscale’s GSOL offers staking yields up to 5.7% annually through its proof-of-stake model.

JPMorgan analysts forecast more than $6 billion in first-year inflows for upcoming Solana ETFs. Firms like VanEck and Fidelity are preparing to launch their own products.

Hong Kong approved its first spot Solana ETF last week. The approval expands international access to Solana investment products beyond U.S. markets.

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