Solana exchange-traded funds (ETFs) have experienced their first net capital outflow since their launch, breaking a 21-day streak of continuous inflows, driven primarily by a single large redemption amid a cautious market environment.
The net outflow for these funds totaled $8.10 million. This marked a significant shift after weeks of sustained demand from institutional investors seeking regulated exposure to the cryptocurrency.
The reversal was predominantly due to a substantial $34.37 million withdrawal from the 21Shares TSOL ETF. This single redemption had a major impact on the aggregate figures.
However, other Solana products continued to attract capital. Bitwise’s BSOL ETF recorded inflows of $13.33 million, while Grayscale’s GSOL ETF added $10.42 million during the same period. These inflows partially offset the larger outflow.
Market analysts link this shift in investor behavior to a broader environment of caution. Investors are reportedly prioritizing assets perceived as less speculative and with more stable narratives.
Despite the ETF outflows, Solana’s token price showed relative strength. The cryptocurrency traded around $142, with only a minor 1.12% dip over 24 hours. This suggests the spot market was not immediately affected to the same extent as the ETF flows.
Collectively, Solana ETFs hold approximately $915 million in assets under management (AUM). This figure represents about 1.15% of Solana’s total market capitalization, which currently stands at $79 billion.
Rachel Lin, CEO and co-founder of SynFutures, indicated that some outflows might be related to capital reorientation. Investors are moving towards altcoins with “less speculative” narratives or clearer regulatory paths.
Lin added that investors are cutting positions in assets perceived as higher risk. Solana often stands out for its volatility and the competitive landscape among Layer-1 blockchain networks.
Solana users tend to react more sensitively to overall market sentiment, according to Lin. This can lead to aggressive selling when the perception of risk increases.
Other altcoin ETFs have seen varied performances. The XRP ETF has maintained net inflows since its November 14 debut. The Dogecoin ETF, launched recently, has accumulated $6.48 million in assets.
The Litecoin ETF, listed on October 28, has not registered outflows. However, its growth has remained stagnant since November 18, suggesting limited short-term interest from traditional investors.