Solana ETFs Experience Outflows as 21Shares’ TSOL Sees $34 Million Decline

Summary:
US spot Solana ETFs faced their first day of outflows, largely driven by the 21Shares Solana ETF (TSOL), which saw a significant reduction of over $34 million. Meanwhile, other SOL ETFs maintained positive performance, absorbing much of the outflow. In contrast, XRP ETFs continue their perfect inflow streak, while Dogecoin ETFs fell short of expectations upon launch.

Key Takeaways

US spot Solana ETFs recorded their first net outflows, totaling $8.1 million.
The 21Shares Solana ETF (TSOL) was primarily responsible for these outflows, experiencing over $34 million in losses.
Other Solana ETFs performed positively, with the Bitwise Solana Staking ETF leading inflows.
XRP ETFs remain strong with cumulative net inflows of $643 million.
Dogecoin ETFs, including the Grayscale Dogecoin Trust ETF (GDOG), underperformed significantly following their launch.

Solana ETFs end perfect run as 21Shares’ TSOL sees $34M in outflows

Solana ETFs Hit a Roadblock

On Wednesday, US spot Solana exchange-traded funds (ETFs) broke their earlier flawless streak of inflows, reporting a total of $8.1 million in net outflows, marking their first loss since they began trading, as noted by ETF data provider SoSoValue. The downturn can be attributed mainly to one product—the 21Shares Solana ETF (TSOL)—which saw over $34 million in outflows. Since its inception, TSOL has accumulated a total of $26 million in net outflows, currently holding net assets of $86 million.

Despite TSOL's struggles, other Solana ETFs remained resilient. The Bitwise Solana Staking ETF (BSOL) excelled, securing $13.33 million in inflows on the same day, bringing its total inflows to an impressive $527.79 million. In addition, the Grayscale Solana Trust (GSOL) attracted $10.42 million, while the Fidelity Solana Fund (FSOL) posted inflows of $2.51 million. According to the Solana Strategic Reserve, SOL ETFs collectively hold about 6.83 million Solana tokens, worth approximately $964 million.

Solana ETF performance data. Source SoSoValue

XRP ETFs Continue Strong Performance

While Solana ETFs encountered challenges, newly launched XRP ETFs maintained their flawless inflow record. Data from SoSoValue indicates that XRP ETFs have consistently recorded daily inflows, totaling an impressive $643 million. On Wednesday, the Bitwise XRP ETF (XRP) led the pack with an inflow of $7.4 million, followed closely by the Canary's XRPC ETF with $5.2 million. Both the Franklin Templeton XRPZ and Grayscale's GXRP also saw inflows of around $4 million each.

XRP inflows and cumulative net assets. Source: SoSoValue

Dogecoin ETFs Fail to Impress

In contrast, the much-anticipated Dogecoin ETFs, which aim to provide exposure to the popular memecoin, did not meet expectations following their launch. The New York Stock Exchange (NYSE) recently approved the Grayscale Dogecoin Trust ETF (GDOG). Analysts had predicted an initial performance nearing $11 million for GDOG, but the reality was quite different.

On its first trading day, the GDOG ETF only managed to generate $1.4 million in volume, which fell significantly short of analyst forecasts. While considered a "solid" performance for an average launch, it was underwhelming for a first-of-its-kind spot product. The following day saw GDOG record a net inflow of just $1.8 million on Tuesday, which then plummeted to a mere $365,000 on its second trading day—a dramatic decline of 80%.

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