Solana is holding a notable position in the crypto market this week. While the price has fallen significantly since last month’s peak, the new Solana exchange-traded funds (ETFs) continue to attract a constant stream of new capital. This contrast raises many questions for investors: how can an asset drop nearly thirty percent while its ETFs break record after record?
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Solana ETFs Continue to See Inflows #
Since the launch of the spot Solana ETFs, approximately €412 million has flowed into the products. Interest has remained surprisingly strong: for seventeen consecutive trading days, there have been net inflows. The main driver behind this inflow is Bitwise’s BSOL ETF, which alone accounts for €367 million.
On November 19, that same fund noted a particularly strong day with over $30 million in new inflows—the largest since early November. The launch of a second product, the 21Shares Solana ETF, also got off to a strong start, debuting with €86 million in assets.
According to Eric Balchunas, all SOL ETFs have raised around €1.7 billion since their debut, and are seeing “basically inflows every single day, even while the market is in extreme fear mode.”
Also noteworthy: while Solana’s ETFs continue to attract capital, Bitcoin funds saw their worst week since February, recording losses of over $2 billion.
Selling Pressure Around $140 Holds SOL Back #
Meanwhile, the price of SOL is moving much less smoothly. At the beginning of the month, the coin was still trading around $186 but has since dropped to below $130, and the market does not seem entirely done with the downward pressure.
On Thursday, SOL briefly showed that there are indeed buyers in the market. The price formed a higher high and higher low compared to Bitcoin and Ethereum, but immediately met resistance at the 50-EMA zone. The movement then completely reversed, and SOL fell back towards $132.
Futures data reveals what’s behind this. As the price rose from $130 to $140, open interest figures remained flat. This indicates that the rally did not attract new long positions. It was only when SOL consolidated around $140 that open interest began to rise—a sign that traders were attempting to open new short positions there.