Solana ETFs Log Seven Days of Inflows Despite 55% Drop in SOL
Solana-focused ETFs have recorded seven consecutive days of net inflows totaling about $674 million, despite SOL tumbling roughly 55% from its January peak. Farside Investors reported a daily high of about $16.6 million during the streak. Major new US-listed products — including REX-Osprey’s staked SOL ETF and Bitwise’s BSOL — launched in 2025 and are attracting institutional and traditional finance demand by offering regulated, custody-safe exposure to SOL. On-chain metrics show weaker fundamentals: Solana’s market cap slipped over 2% in the past week, TVL has fallen amid broader market weakness, and SOL has traded below its 365-day moving average since November. Price faces resistance in the $140–$145 range. Over $447 million in open interest in SOL perpetual futures and observed accumulation by large holders on-chain indicate continued trader engagement and institutional accumulation beneath key resistance. Separate developments include Kazakhstan’s national Solana-centred blockchain strategy (economic special zone, Tenge stablecoin, developer training and tokenized IPOs) and experiments by institutions such as JPMorgan and Franklin Templeton with on-chain issuance and investments on Solana. The divergence between steady ETF inflows and a weak spot price suggests institutional demand is being routed through ETFs, increasing liquidity and lowering custody risk for traditional investors — a dynamic that can support accumulation but also preserve volatility as ETFs channel more capital into SOL exposure.
Neutral
The net effect on SOL price is mixed. Large, consistent ETF inflows (about $674M over seven days) and new US-listed products reduce custody friction and channel institutional capital into SOL, which is a bullish structural development that supports demand and could underpin accumulation at lower levels. High open interest in perpetual futures and on-chain accumulation by large holders further indicate engaged traders and potential buying pressure. However, on-chain fundamentals (lower TVL, market-cap decline, SOL trading below its 365-day MA) and continued price resistance around $140–$145, plus a roughly 55% drop from the January peak, keep near-term downside risk and volatility elevated. The divergence — strong ETF flows amid weak spot price — often signals that institutional demand is occurring through regulated vehicles while broader market sentiment remains cautious. Short-term: likely continued volatility and range-bound trading with possible accumulation under resistance. Medium-to-long term: ETFs and institutional adoption are incremental bullish catalysts, but sustained price recovery depends on improving on-chain fundamentals and macro risk appetite.