Solana ETF attracts 545 million in net inflows against the trend! BTC and ETH funds plummet by 2.7 billion

Bitcoin and Ethereum ETF funds continue to flow out, but the Bitwise Solana ETF gained over $126 million in net inflows during its first full trading week. Since listing on the New York Stock Exchange on October 28, the Bitwise Solana Staking ETF has accumulated more than $545 million in net capital inflows, including $223 million from seed funding.

Eight consecutive days of net inflows set a rare ETF record

(Source: Farside Investor)

According to data from Farside Investments, since its listing on the NYSE on October 28, the Bitwise Solana Staking ETF (BSOL) has amassed over $545 million in net capital inflows, including $223 million from seed investments. This means that after excluding seed funding, BSOL has gained over $322 million in genuine market demand during its first week. The ETF’s share price closed up 5% on Friday, reflecting strong market enthusiasm for the product.

What is even more remarkable is the continuity. Bitwise CEO Hunter Horsely posted on X earlier Friday: “Since Solana launched, there have been inflows every day for the past 8 days, totaling over $500 million. Clearly, investors want to invest in Solana.” Eight consecutive days of unbroken net inflows are extremely rare in the ETF market, especially considering the overall crypto market has been in a correction phase during this period. This persistence indicates that demand for Solana ETFs is driven by genuine institutional and retail allocation needs rather than short-term speculation.

During this period, assets in 11 spot Bitcoin ETFs shrank by over $2.1 billion, while 9 Ethereum funds saw net outflows totaling $579 million. The combined outflows of approximately $2.679 billion contrast sharply with the $545 million inflow into Solana ETFs. This market divergence suggests investors are reassessing crypto allocations, shifting funds from primary assets (BTC, ETH) toward high-performance smart contract platforms like SOL.

This shift may be driven by multiple factors. First, Bitcoin ETFs have been operating for nearly a year, and early investors might be taking profits. Second, ongoing issues with Ethereum’s gas fees and scalability have undermined institutional confidence. Third, Solana, as a “fresh” ETF target, is attracting funds seeking diversification. Fourth, Solana’s technological advantages (high throughput, low fees) and its growing ecosystem (DeFi TVL over $11.3 billion) provide a compelling investment narrative.

Grayscale Solana Trust ETF (GSOL) also performed strongly, with approximately $114 million in net inflows, mostly from seed investments. Combined, the two Solana ETFs have attracted over $659 million, a scale that is rare among newly launched crypto ETFs, indicating market demand for Solana exceeds expectations.

SOL price plunges 29%, why is capital still flowing in?

Despite SOL’s price declining, the debut of the Bitwise Solana ETF remains impressive. According to CoinGecko, Solana’s recent trading price is $156, down over 16% in the past week and nearly 29% over the past month. This decline is partly due to government shutdown fears and macroeconomic uncertainties causing overall market weakness. Since hitting an all-time high above $126,000 in early October, Bitcoin has fallen about 16%.

The combination of falling prices and continued capital inflows is seen as a strong buy signal in the ETF market. This phenomenon indicates that investors are “buying the dip,” viewing the price correction as an opportunity to increase their holdings rather than panic selling. From a psychological perspective, investors willing to buy during downturns tend to have long-term confidence in the asset, rather than being short-term speculators.

ETF.com senior analyst Sumit Roy explained this in a message to Decrypt: “(Solana) capital inflows make sense,” noting the token’s market cap of around $90 billion. “Solana has a loyal following, arguably the most loyal after Bitcoin and Ethereum.” Such community loyalty is crucial in crypto, providing solid buying support during price declines.

Four reasons why Solana ETFs are attracting capital against the trend

Clear technological advantages: 65,000 transactions per second, transaction fees below $0.001, solving Ethereum’s pain points

Growing ecosystem: DeFi TVL over $11.3 billion, accelerated adoption of stablecoins and tokenized assets

Staking yields: BSOL launched with 100% staking, offering additional income

Relative valuation advantage: Market cap of $90 billion is only about 1/5 of Ethereum’s, with larger growth potential

Roy added: “It’s not surprising that Solana ETFs account for at least 5% of its market cap. From this perspective, $500 million is still small. When BSOL launched with 100% staking, it became even more attractive.” If the Solana ETF market reaches 5% of SOL’s market cap, targeting $4.5 billion, the current $659 million scale is only 14.6% of that, leaving significant room for growth.

8-A filings open a new era for altcoin ETFs

Last week, Bitwise and Grayscale launched Solana ETFs, surprising some optimistic observers who feared government shutdowns would delay ongoing regulatory processes. However, the NYSE’s acceptance of Form 8-A provides fund managers with an alternative route outside the traditional ETF approval process.

Issuers submit these forms to the SEC to register certain securities under the Securities Exchange Act of 1934. These funds meet the SEC’s general listing standards established in September for commodity trust funds. This regulatory breakthrough is significant because it bypasses the usual S-1 approval process, greatly shortening the listing timeline.

This precedent opens the door for other altcoin ETFs. Last week, Canary’s Litecoin and Hedera spot funds began trading on NASDAQ after SEC approval of their 8-A filings. Other crypto funds benefiting from the SEC’s rule change may soon open to investors. Documents submitted by Bitwise on Thursday show that the company has removed the “delayed revision” clause from its S-1 prospectus for the Bitwise Dogecoin ETF. If the SEC does not oppose, the fund could start trading within 20 days of filing.

“Looks like Bitwise is doing an 8(a) operation on its spot Dogecoin ETF, which basically means they plan to go effective within 20 days unless blocked,” ETF analyst Eric Balchunas wrote on X Thursday. This suggests that after Solana, a Dogecoin ETF could debut as early as late November or early December. If this trend continues, ETFs for other major altcoins like XRP, Cardano, and Polkadot may also be approved in the coming months.

This has profound implications for the entire crypto market. Previously, only Bitcoin and Ethereum had spot ETFs; other altcoins could only be invested indirectly through trusts or futures products. The opening of the 8-A pathway means any qualifying crypto asset can potentially launch a spot ETF. This will significantly improve institutional access and liquidity for altcoins.

Staking features and the investment logic of a $900 billion market cap

Sumit Roy emphasized BSOL’s staking feature: “BSOL launched with 100% staking, which makes it more attractive.” This is a key difference between Solana ETFs and Bitcoin ETFs. Bitcoin does not offer staking yields; holders profit only from price appreciation. In contrast, Solana’s PoS mechanism allows holders to earn annualized yields of about 5% to 7% through staking.

BSOL’s 100% staking means investors can gain SOL price exposure while automatically earning staking rewards. This dual income stream greatly enhances the investment case for Solana ETFs compared to pure price-tracking products. For institutional investors, the 5% to 7% stable yield combined with potential price appreciation offers highly attractive risk-adjusted returns.

Roy pointed out that Solana’s $90 billion market cap is a key support for capital inflows: “Solana has a loyal following, arguably the most loyal after Bitcoin and Ethereum.” This community base is vital in crypto, providing strong buy support during downturns. Despite the 2022 FTX collapse (FTX was a major supporter of Solana), the ecosystem not only survived but grew explosively from 2023 to 2025.

Myriad’s survey found only 13% of respondents expect Solana’s price to surpass its all-time high of $293 by year’s end. This pessimism contrasts with current capital inflows, suggesting smart money is positioning during the lows. If Solana unexpectedly breaks its high before year-end, it could trigger FOMO, attracting even larger capital inflows.