Solana ETFs Face Largest-Ever Outflow as SOL Price Tests Key Support Levels

TLDR

• Solana ETFs face their largest outflow of $13.55 million as crypto market declines.
• Solana’s SOL price drops, testing support levels around $123.20 after ETF outflows.
• Institutional interest in Solana remains strong despite recent ETF outflows.
• Solana’s staking yields and cost efficiency attract ongoing institutional demand.

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The cryptocurrency market continues to see fluctuating activity, with Solana (SOL) facing significant challenges despite institutional interest. Solana ETFs, which launched in late October, recently experienced their largest-ever outflow of $13.55 million as of December 2, 2025.

This outflow is a result of declining market conditions, as investors look to adjust their portfolios amid broader market uncertainties. The outflows primarily affected the 21Shares Solana ETF (TSOL), which recorded a redemption of $32.54 million, contributing to a net outflow of $60.14 million since its inception.

ETF Outflows and SOL Price Pressure

The Solana ETF sector has been facing a reversal in inflows following a period of robust activity. These ETFs, particularly the Bitwise Solana Staking ETF (BSOL), have been popular among institutional investors due to Solana’s proof-of-stake model, which provides attractive staking yields.

However, the recent outflows from these products suggest a shift in sentiment as market conditions deteriorate. Despite the outflows, Solana ETFs‘ assets under management (AUM) still stand at over $790 million, indicating sustained institutional interest in the ecosystem.

As of the latest reports, the SOL price has been showing signs of weakness. Trading at $127.53, SOL is nearing key support levels, with the recent low at $123.31 signaling potential further downside if the support does not hold. With trading volume down by about 3% in the last 24 hours, the price seems to be consolidating, with a potential risk of falling below the crucial $123.20 level, which has served as support in recent weeks.

Institutional Interest and Regulatory Developments

While the outflows from Solana ETFs may raise concerns, it’s important to note that institutional interest remains strong in Solana, especially due to the network’s unique features. Solana offers attractive staking yields around 7%, a compelling factor for investors seeking passive income. Additionally, Solana’s low transaction fees and faster processing times make it an appealing alternative to slower, higher-cost blockchains like Bitcoin.

The recent regulatory developments have also played a role in maintaining institutional interest in Solana. The approval of crypto ETFs in the U.S. and other regions has normalized access to digital assets for institutional investors. This has allowed products like Solana ETFs to thrive in the current market environment, despite recent outflows. According to analysts, Solana’s alignment with innovation-driven investors positions it well for the future, even amidst market downturns.

Future Outlook for Solana and Its Ecosystem

Looking ahead, the performance of Solana’s price and its ETF products will depend largely on the broader market trends. The network’s technological advancements and low-cost solutions will likely continue to attract institutional investment. However, for Solana to regain momentum, the price needs to hold above key support levels, such as $123.20, and avoid falling below the two-year trendline that currently sits near $120.

As institutional treasuries continue to accumulate SOL for staking yields, there is potential for the asset to rebound if the market sentiment shifts. However, the current pullback could signal a more extended consolidation period, with Solana needing to address both the decline in DeFi activity and reduced network fees to maintain investor confidence.

While recent events suggest a cautious outlook for Solana in the short term, its long-term prospects remain positive, driven by strong institutional demand and a solid technical foundation.

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