Solana ETF Flatlines: REX Osprey’s Fund Sees Zero Net Flows for Most of August

Wall Street's latest crypto experiment hits a snag as the REX Osprey Solana ETF—a bellwether for institutional interest—goes stagnant. No inflows, no outflows. Just crickets.

The big question: Is this a pause before the storm, or are TradFi players getting cold feet?

August’s trading logs read like a desert crossing: day after day of net-zero activity. Either everyone’s waiting for the next Solana breakout, or the suits finally realized crypto doesn’t care about their spreadsheets.

Bottom line: Even with Solana’s tech chops, ETFs still live and die by Wall Street’s fickle appetite. Maybe next month they’ll remember why they wanted exposure in the first place.

Institutional hesitation

flow data showed Solana products attracted $874 million in year-to-date inflows, staying behind Ethereum (ETH) and XRP among major cap altcoins despite its position as the fourth-largest cryptocurrency by market capitalization.

The trading pattern could reflect broader institutional hesitation toward Solana-focused investment products compared to Bitcoin (BTC) and ethereum alternatives. 

Nansen senior research analyst Jake Kennis attributed the disparity to institutional portfolio allocation strategies. He explained in a note:

Structural complexity creates adoption barriers

The REX Osprey fund’s design incorporates staking mechanisms and offshore ETF allocations that differentiate it from traditional spot cryptocurrency products. 

Stabolut founder and CEO Eneko Knörr identified these features as adoption obstacles rather than demand deficiencies. 

Knörr said:

The fund charges a 0.75% management fee, positioning it at the higher end of cryptocurrency ETF expense ratios. Traditional spot Bitcoin and Ethereum ETFs from major issuers typically carry fees between 0.15% and 0.25%.

Kennis, from Nansen, noted that the fee structure creates a cost-benefit analysis for institutional investors weighing direct cryptocurrency exposure against ETF convenience. 

He referenced Solana’s approximately 7% annual staking rewards:

Market positioning and future outlook

The absence of major financial institutions like BlackRock and Fidelity in the Solana ETF space contributes to limited market penetration. 

REX Shares operates as a smaller ETF issuer without the distribution networks and brand recognition of Wall Street’s largest asset managers.

Knörr argued:

As of Aug. 11, the US Securities and Exchange Commission (SEC) is still considering the approval of Solana ETFs under the more tax-friendly 1933 Act.