Solana is attracting one of the strongest waves of institutional demand in the market right now, yet its price, along with Bitcoin and Ethereum, is still crashing. Despite 13 consecutive days of Solana ETF inflows and more than $46 million added this week, the SOL price has dropped nearly 20% in the last 7 days. Bitcoin and Ethereum, which saw more than $1.8 billion in combined ETF outflows, are down roughly 15% each over the same period.
It’s a perfect example of how ETF flows can reveal long-term allocation trends while short-term price action still reacts violently to macro conditions, regulation, and market-wide deleveraging.
Institutions Rotate In, But Markets Still Bleed
According to on-chain analyst aixbt, Solana ETFs continue pulling in capital even as Bitcoin and Ethereum ETFs bleed heavily. BlackRock’s IBIT and major Ethereum products saw some of their largest weekly outflows of the year, while VanEck is waiving fees on the first $1B of its Solana ETF to accelerate adoption. Bitwise has accumulated $357 million since launch, and Grayscale converted $541 million into its Solana trust.
Put simply: Institutions are buying SOL at ~$160 even with a 6% staking yield priced in, as aixbt reported. They’re treating Solana as a long-term allocation target, not a volatility trade.
But ETF flows tell only the institutional story, not the whole story. The broader crypto market is under pressure from powerful macro and regulatory forces.
solana spot etfs pulled in $46m during their 13th consecutive inflow day. bitcoin etfs bled $1.1b, ethereum lost $729m same week. vaneck waiving fees on first $1b, grayscale converted $541m trust, bitwise accumulated $357m since launch. institutions buying sol at $160 with 6%…
Why Crypto Is Still Crashing
Even with Solana ETF demand climbing, the entire market is selling off. Several key factors explain why prices are falling while ETFs diverge.
Regulatory Heat Intensifies
Regulation turned sharply negative this week:
- •The White House is reviewing a proposal that could allow the IRS to access offshore crypto transaction data, raising fears of aggressive compliance enforcement.
- •An ICIJ investigation linked Binance and OKX to $634 million in illicit transfers, drawing renewed attention from global regulators.
- •Combined crypto ETFs saw $700 million in withdrawals last week as institutions moved to de-risk.
Uncertainty always drives capital out of risk assets, and crypto sits at the very edge of that spectrum.
Macro Anxiety Returns, Including Geopolitics
Markets were rattled after President Trump refused to rule out potential military actions in Venezuela, escalating geopolitical uncertainty. Stocks, commodities, and crypto all reacted with risk-off behavior. When macro fear spikes, Bitcoin and Ethereum usually take the first hit, and altcoins like Solana bleed even harder.
Derivatives Flush and Leverage Unwinding
The latest selloff was also driven by a significant derivatives wipeout:
- •Open interest dropped sharply across major exchanges
- •Liquidations surged
- •Funding rates flipped violently
Even strong ETF inflows can’t offset the immediate impact of billions in leveraged positions unwinding.
Solana, despite its institutional support, trades in a high-beta range which means it falls harder when the market panics.
So Why Are Solana ETFs Still Pumping?
The inflows show a clear trend: long-term capital is rotating into Solana, even as spot price suffers short-term pain.
Institutions seem to view SOL as:
- •high-growth
- •high-throughput
- •yield-generating
- •and structurally undervalued compared to Bitcoin and Ethereum
The Fear & Greed Index sitting at 10 means retail is in full panic mode, but institutions are quietly accumulating.
Bottom Line: Solana Stronger Than ETH and BTC?
Crypto prices are crashing, yes. But the underlying allocation trends look very different:
Bitcoin and Ethereum are seeing massive outflows. Solana is seeing record inflows.
Short-term volatility is masking a deeper rotation; one that could put Solana in a stronger position once macro pressure cools. For now, markets remain fragile, but ETF behavior suggests institutions are already positioning for the next major cycle.