In short
- Spot Solana ETFs saw outflows of $8.1 million on Wednesday, breaking a 21-day inflow streak since their debut.
- The outflow was mainly driven by a $34.37 million redemption from the 21Shares fund.
- Solana is seen as a riskier, high-beta bet compared to altcoins like XRP, Decrypt was told.
U.S. listed Solana funds recorded their first outflows of $8.10 million on Wednesday, breaking a 21-day streak of inflows since their debut.
Despite the outflow of funds Solana is trading around $141, up about 3.6% in the past 24 hours, according to CoinGecko data.
The net outflow was entirely driven by a $34.37 million redemption of 21Shares’ TSOL. This was partially offset by inflows into other funds, including $13.33 million for Bitwise’s BSOL and $10.42 million for Grayscale’s GSOL, according to data from SoSoValue.
Solana ETFs’ total assets hover around $915 million, about 1.15% of Solana’s $79 billion market cap.
“Some flows from Solana may be part of a broader realignment from higher beta altcoins to altcoins that are perceived to have better structural adoption or regulatory clarity,” Rachel Lin, CEO and co-founder of SynFutures, told me. Declutter on Wednesday.
Altcoin ETFs
XRP ETF net flows, on the other hand, have remained in the green since its debut on November 14. The spot Dogecoin ETF, which launched on Monday, has total assets of $6.48 million, representing just 0.03% of the meme coin’s $23 billion market cap.
The Litecoin ETF, launched on October 28, has seen no outflows but has remained flat since November 18.
In today’s risk environment, assets with clearer, less speculative stories tend to hold up better, Lin said. Unlike XRP, “Solana can be seen as more exposed to Layer 1 competition despite its strong ecosystem, leaving it vulnerable when de-risking.”
Furthermore, Lin characterized Solana holders as more sentiment-driven, “who tend to exit aggressively when sentiment turns.”
Despite the bullish performance over the past 24 hours, Solana’s 30-day performance is hovering around -30%, down more than 50% from its all-time high of $293.31.
On prediction market Myriad, owned by Decode Parent company Dastan, users reflected this gloomy outlook, leaving a 92% chance that Solana would fail to reach an all-time high of $293.31 by the end of the year.
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