Key Insights
- •Solana ETFs experienced their first day of outflows on Thursday, ending a 21-day period of consistent inflows.
- •The products recorded a combined net outflow of $8.1 million, with all withdrawals attributed to the 21Shares Solana ETF.
- •The 21Shares Solana ETF alone saw $34 million withdrawn, while other Solana ETFs continued to attract new investments.
21Shares Solana ETF Leads Outflows With Significant Withdrawals
Solana ETF flows encountered their first day of outflows on Thursday, interrupting a 21-day streak of steady inflows. The collective net outflows across all spot Solana ETF products amounted to $8.1 million, with the entire sum being withdrawn from the 21Shares Solana ETF. Specifically, TSOL (the 21Shares Solana ETF) posted $34 million in withdrawals, while the remaining products still managed to attract net positive inflows.
The Solana ETF market experienced a downturn on Wednesday, following three consecutive weeks of gains. Data indicated that the products collectively registered $8.1 million in net outflows, breaking a 21-day streak of uninterrupted inflows. This reversal was primarily driven by the 21Shares Solana ETF, TSOL, which saw over $34 million withdrawn in a single trading session. Despite these outflows, TSOL's total net outflows since its launch stand at $26 million, and it continues to hold $86 million in net assets.
Despite the significant withdrawals from one issuer, the broader SOL ETF market did not experience entirely negative performance. Other Solana ETFs continued to attract fresh capital, helping to absorb and mitigate the impact of the sharp pullback. The Bitwise Solana Staking ETF led the positive trend, attracting $13.33 million in a single day. This consistent demand has boosted its total inflows to an impressive $527.79 million.
Support also came from other significant players in the market. Funds associated with Grayscale and Fidelity added $10.42 million and $2.51 million, respectively, contributing to the offset of the day's weaker performance. Collectively, Solana ETFs now hold approximately 6.83 million SOL, valued at around $964 million. This substantial position indicates that investors remain engaged with Solana, even amidst recent price fluctuations.
In contrast, sentiment appears weaker for other digital assets. The initial enthusiasm for Dogecoin ETFs has diminished, with Grayscale's GDOG fund experiencing an 80% drop in inflows on its second day, reaching only $365,000.
Key Solana (SOL) Price Drivers: Potential for $500 by 2026
Solana (SOL) price is showing signs of another significant move. The current chart suggests that the prolonged consolidation phase is nearing its end, and the price is transitioning into a new expansion range. Support levels have held firm through multiple pullbacks, and the prevailing market structure favors continued upward movement rather than a breakdown.
Momentum is being bolstered by factors beyond technical indicators. On-chain activity remains robust, and consistent demand is being fueled by ETF inflows. Concurrently, a proposed reduction in inflation is strengthening the long-term supply outlook for SOL. Prominent analyst Gordon Gekko has expressed optimism, stating that SOL is far from reaching its full potential.
Gekko highlighted increasing network activity, steady institutional inflows, and improving token economics as key reasons supporting the possibility of SOL price reaching $500 by 2026.
The SOL price is no longer making aggressive lower lows; instead, it is forming a shallow base, which is often an early indicator that downward momentum is waning. However, this does not yet confirm a reversal. For a confirmed reversal to occur, buyers need to demonstrate substantial buying pressure. Without stronger demand, the current structure remains fragile, and a mere pause in selling is insufficient to establish a lasting bottom.
According to top analyst Ted Pillows, Solana treasury companies are exhibiting early signs of recovery. This shift is considered significant, as these firms often lead broader market sentiment, and their behavior can provide insights into future trends.
In the coming days, market observers will be closely monitoring Solana's reaction to broader cryptocurrency market movements. Analysts also noted that consistent ETF inflows, or the lack thereof, could significantly influence the next major price move for SOL.