Spot Solana ETFs Post First Red Day Since Launch

In brief

• Spot Solana ETFs saw outflows of $8.1 million Wednesday, breaking a 21-day inflow streak since their debut.
• Outflows were primarily driven by a $34.37 million redemption from 21Shares’ fund.
• Solana is seen as a riskier “high-beta” bet compared to altcoins like XRP, Decrypt was told.

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U.S. spot Solana exchange-traded funds recorded their first outflow of $8.10 million on Wednesday, breaking a 21-day streak of inflows since their debut.

Despite the fund outflows, Solana is trading at around $141, up roughly 3.6% over the past 24 hours, according to CoinGecko data.

The net outflow was driven entirely by a $34.37 million redemption from 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, per SoSoValue data.

The total assets held by Solana ETFs hover around $915 million, roughly 1.15% of Solana’s $79 billion market cap.

“Some of the flows out of Solana may be part of a broader reallocation away from ‘higher beta’ altcoins into ones perceived as having better structural adoption or regulatory clarity,” Rachel Lin, CEO and Co-Founder of SynFutures, told Decrypt on Wednesday.

Altcoin ETFs

XRP ETF netflows, on the other hand, remain in the green since its November 14 debut. The spot Dogecoin ETF, launched on Monday, holds $6.48 million in total assets, representing a mere 0.03% of the meme coin’s $23 billion market cap.

Launched on October 28, the Litecoin ETF has seen no outflows but has remained flat since November 18.

In the current risk-off environment, assets with clearer, less speculative narratives tend to hold up better, Lin said. Unlike XRP, “Solana may be seen as more exposed to Layer one competition despite its strong ecosystem, making it vulnerable when risk is being cut back.”

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 hovers around -30% and is down more than 50% from its all-time high of $293.31.

On prediction market Myriad, owned by Decrypt’s parent company Dastan, users reflected this bleak outlook, placing a 92% chance on Solana failing to revisit its all-time high of $293.31 by year’s end.