Solana ETFs Experience $8 Million Outflow, Ending 21-Day Inflow Trend – What Lies Ahead?

On Wednesday, Solana’s continuous run of ETF inflows was interrupted as U.S. spot Solana exchange-traded funds reported net outflows of $8.1 million, according to data compiled by SoSoValue.

Key Takeaways

Solana ETFs faced $8.1 million in outflows, breaking a 21-day inflow trend.
TSOL led the outflows, losing over $34 million in a single day.
Other Solana ETFs, like BSOL and Grayscale Solana Trust, still attracted significant capital.
November recorded a robust inflow of $414.01 million for Solana, reinforcing institutional interest.
Bitcoin ETFs continue their growth, while Ethereum faces net outflows.
Overall market caution and decreased on-chain activity are affecting Solana's performance.

This outflow was significant, marking the first time since the products were launched earlier this month that inflows have turned negative, halting a 21-day trend that had positioned Solana as a leading player in the rapidly expanding ETF market for non-Bitcoin assets.

21Shares’ TSOL Drives Solana ETFs Down While Total Holdings Approach $1 Billion

The downturn was primarily influenced by the 21Shares Solana ETF, TSOL, which experienced an outflow of over $34 million in just a single trading session.

Since its launch, TSOL has accumulated a total of $26 million in net outflows and currently holds net assets of $86 million.

Despite this considerable withdrawal from one issuer contributing to the overall decline, other Solana ETFs continued to see steady inflows, helping to balance the overall performance.

The Bitwise Solana Staking ETF, BSOL, led the inflows with $13.33 million, increasing its total inflow to $527.79 million. The Grayscale Solana Trust also had a strong showing, adding $10.42 million to its totals, while Fidelity’s FSOL fund increased by $2.51 million.

Overall, Solana ETF products now collectively represent approximately 6.83 million SOL tokens, valued at nearly $964 million. This indicates that institutional interest in Solana remains robust, even amidst fluctuating short-term inflow trends.

Despite the setback on Wednesday, Solana spot ETFs wrapped up the week with a net gain of nearly $103 million, bringing total inflows to $613.22 million and total net assets to $917.99 million.

In November alone, the ETFs generated $414.01 million in inflows, comfortably surpassing the $199.21 million that was recorded in October, which was their debut month.

The contrasting performance of Solana ETFs compared to the newly launched XRP products, which have maintained consistent inflows without any outflows, highlights the varying dynamics within the cryptocurrency market.

XRP ETFs reported an additional $21 million in inflows on Wednesday, raising their cumulative total to $643 million. The Bitwise XRP ETF led these inflows with $7.4 million, followed closely by Canary’s XRPC with $5.2 million, and Franklin Templeton’s XRPZ and Grayscale’s GXRP both gaining roughly $4 million each.

In another note, the performance of Dogecoin ETFs fell short of expectations. The New York Stock Exchange approved Grayscale’s Dogecoin Trust ETF listing, but it only managed to debut with $11 million, below analyst predictions.

Institutional Demand Fuels Bitcoin ETFs Amid Weaker Solana Performance Indicators

Meanwhile, Bitcoin ETFs have maintained a trend of modest strength, adding $21.12 million on November 26, despite facing some volatility.

The total cumulative inflows for Bitcoin ETFs now stand at $57.63 billion, driven by daily trading volumes exceeding $4.5 billion.

Ethereum ETFs have shown slightly improving daily activity at the end of the month, achieving inflows above $60 million over three consecutive days. However, they continue to exhibit net outflows for November, amounting to $1.50 billion, as investors shift their attention towards Bitcoin, Solana, and XRP.

Analysts keeping an eye on Solana’s ETF performance have noted that the outflows coincide with a broader trend of market caution and decreasing on-chain activity.

Data from Nansen reveals a 6% decline in active Solana addresses and a 16% reduction in network fees over the past week. Additionally, the total value locked on the network has fallen by 32% from its September peak of $13.23 billion, now standing at approximately $9.1 billion.

This slowdown is reflected in major Solana protocols, including Jito, Jupiter, Raydium, and Sanctum, all reporting double-digit declines in total value locked this month.

Technical indicators suggest ongoing uncertainty. Solana is currently trading within a bearish continuation pattern after retreating from the $170 level earlier this month. Traders have identified the $140–$145 range as critical, with a break below it possibly signaling a further downturn.

Market analysts indicate that the disparity between sustained ETF inflows and weakening spot prices highlights underlying tensions in the cryptocurrency markets, where institutional accumulation is ongoing, even as retail investors show caution and recent selling trends exert downward pressure on prices.

In the coming days and weeks, experts anticipate that Solana will remain influenced by broader market fluctuations and the consistency of ETF flows.