While the broader crypto market remains uncertain, Solana investment funds continue to attract capital. U.S. spot Solana exchange-traded funds (ETFs) have now recorded net inflows for twenty consecutive trading days. Since their launch at the end of October, almost €500 million in capital has flowed into these funds. The price of Solana (SOL), however, has yet to benefit. Despite SOL’s low price point, the ETFs may be building a new foundation for the asset.
Solana ETFs Continue to Attract Capital #
According to data from SoSoValue, Monday alone saw a net inflow of €50 million into the six U.S. spot Solana ETFs. The majority of this, around €34 million, went to the Bitwise BSOL fund. In total, the funds now manage approximately €732 million, representing roughly 1.1% of Solana’s total market capitalization.
Despite this, the price of Solana itself has lagged behind. The past year has shown that the launch of ETFs can provide a massive boost to a coin’s value. The fact that Solana’s price is trailing is therefore noteworthy. This can undoubtedly be placed within the broader context of the current crypto market, but the success of the ETFs has not yet been able to offset the declining price.
While the price is up 5% today, it has shed over 30% in the past month. The success of the Solana ETFs has not yet had a positive impact on the price, but we may see the effects later on.
Investors Look Beyond Bitcoin and Ethereum #
While Bitcoin and Ethereum ETFs were the only serious option for large investors for years, the available options have completely changed in just a few months. Solana, XRP, and now Dogecoin have all launched their own ETFs, and remarkably, it is these newcomers that are successfully attracting money.
Where Bitcoin ETFs have seen significant outflows in recent weeks, the alternative funds are seeing daily inflows increase. This indicates that institutional players are broadening their horizons and no longer relying exclusively on the two largest coins. It seems large investors are now actively diversifying their portfolios and searching for assets that might recover faster later in the cycle.