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Solana ETFs See First Outflow Since Launch Amid Crypto Market Recovery

Spot Solana ETFs experienced their first-ever outflow of $8.1 million on Wednesday, ending a 21-day streak of inflows since their debut. The outflow was mainly driven by a $34.37 million redemption from 21Shares’ TSOL fund.

Solana remains resilient, trading at around $141, a 3.6% increase in the past 24 hours, according to CoinGecko data.

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Main Drivers of Outflows

The largest contributor to the outflow was a $34.37 million redemption from 21Shares’ TSOL fund. Other funds, including Bitwise’s BSOL and Grayscale’s GSOL, saw inflows of $13.33 million and $10.42 million, respectively, partially offsetting the overall outflow.

Solana ETFs now manage around $915 million in assets, representing just over 1% of Solana’s $79 billion market capitalization.

Solana Seen as Riskier Than XRP

Rachel Lin, CEO and Co-Founder of SynFutures, noted that the outflows could be part of a broader trend where investors are shifting away from higher-risk altcoins like Solana to those with clearer regulatory clarity and adoption, such as XRP.

In the current market, assets with less speculative narratives tend to hold up better. While Solana has a strong ecosystem, its competition from other Layer 1 networks makes it more vulnerable when investors reduce risk exposure.

Performance Outlook

Despite recent gains, Solana is down around 30% over the past 30 days and more than 50% from its all-time high of $293.31. On prediction market Myriad, a 92% chance was placed on Solana failing to reach its all-time high by year’s end.

Simonas Brazionis

Blockchain Expert

Simonas is a crypto and blockchain expert with 6 years of experience. Passionate about the industry he educates others on blockchain technology, and continuously expands his knowledge. He has helped many newcomers understand crypto, navigate investments, and stay informed about trends like DeFi and NFTs.