Solana ETFs See First Drop After Strong Start
Solana's ETFs experienced their first decline since launch, with an outflow of $8.10 million on a recent Wednesday. This ends a 21-day streak of continuous inflows. Despite this setback, Solana's price has shown resilience, trading around $141, up approximately 3.6% in the last 24 hours.
Key Details
- Outflow Details: The outflow was primarily due to a significant redemption of $34.37 million from 21Shares’ TSOL fund.
- Inflows Elsewhere: This was partially balanced by inflows into other Solana ETFs:
- Bitwise’s BSOL: $13.33 million
- Grayscale’s GSOL: $10.42 million
Current Status
- Total Assets Under Management: Around $915 million
- Market Cap Comparison: This represents just about 1.15% of Solana's overall market cap of $79 billion.
Analyst Insights
Analysts suggest that the outflows might be part of a broader trend where investors are moving away from riskier altcoins. They are opting for assets perceived to have better adoption or regulatory clarity. This shift could indicate a strategic reallocation rather than a loss of confidence in Solana itself.
Contrasting Trends
- XRP ETFs: Have seen positive net flows since their debut.
- Dogecoin ETF: Launched just a few days ago, has already accumulated $6.48 million in assets, though this is a tiny fraction of Dogecoin's $23 billion market cap.
- Litecoin ETF: Launched on October 28, has not seen any outflows but has also not experienced significant growth since mid-November.
Price Performance
Solana's price performance over the past 30 days has been lackluster, with a decline of around 30%. This drop is even more pronounced when compared to its all-time high of $293.31, where it is now down by more than 50%.
