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Solana ETFs Shatter Records with $200M Inflows in 4 Days as Bitcoin and Ethereum Funds Bleed

Solana ETFs Shatter Records with $200M Inflows in 4 Days as Bitcoin and Ethereum Funds Bleed

Published:
2025-11-01 16:43:02
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In a stunning market reversal, Solana spot ETFs have attracted nearly $200 million in just four days while Bitcoin and ethereum products see massive outflows. This capital rotation suggests institutional investors may be shifting their crypto allocations, with Solana emerging as the new darling of Wall Street. The SOL token's price hasn't yet reflected these inflows due to OTC trading mechanisms, creating an intriguing market dynamic.

Solana's ETF Breakout: $200M Floods In While Rivals Struggle

The numbers tell a compelling story: Solana-based ETFs saw $44.48 million inflows on Friday alone, capping a record-breaking four-day streak. Meanwhile, Bitcoin ETFs bled $____ and Ethereum products lost $____ during the same period, according to CoinGlass data. This dramatic shift suggests institutional players might be diversifying beyond the "blue chip" cryptos toward newer, higher-growth potential assets.

Solana ETF inflows chart

Source: CoinGlass

The Solana Paradox: Why Aren't Prices Rising?

Here's the head-scratcher: SOL actually dropped nearly 4% last week despite these massive inflows. The explanation lies in ETF mechanics - many providers source SOL through OTC deals or authorized participants rather than open market purchases. "It's like filling a swimming pool through the backdoor," explains BTCC analyst Mark Chen. "The demand's there, but it's not immediately visible in spot prices."

Three Reasons Institutions Love Solana ETFs

1.: Unlike Bitcoin, solana ETFs can generate 5-7% APY through staking rewards
2.: Faster transactions and lower fees than Ethereum
3.: Over 400 dApps now built on Solana, from DeFi to NFTs

"In our client conversations, Solana keeps coming up as the 'next logical step' after bitcoin and Ethereum exposure," notes Chen. TradingView charts show SOL has outperformed ETH by 38% year-to-date.

Cryptocurrency comparison

Source: DepositPhotos

Sustainable Shift or Short-Term Hype?

Bloomberg's Eric Balchunas observes: "$BSOL launched with $220M assets - already half the size of $SSK. The organic growth suggests real demand." However, skeptics warn this could mirror 2023's short-lived altcoin ETF surges. The true test will be whether institutions maintain these positions through market volatility.

Should You Buy Solana Now?

While the ETF news is bullish, SOL has already rallied 120% since June. As always in crypto, timing matters. The BTCC team suggests dollar-cost averaging rather than chasing the pump. Remember - what goes up in crypto often comes down twice as fast.

Solana ETF: Your Questions Answered

Why are Solana ETFs gaining popularity?

Institutions see Solana as a high-growth alternative to established cryptos, offering staking yields and strong technical fundamentals.

How do ETF inflows affect SOL price?

OTC transactions mean ETF demand doesn't always directly impact market prices immediately, creating potential lag effects.

Are Solana ETFs better than holding SOL directly?

ETFs offer regulatory protection and staking automation, while direct ownership provides more flexibility and potential airdrop eligibility.

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