# Institutions are buying at the bottom of SOL, what does this signal?

In the past week, BTC has dropped over 26%, and the entire market is shrouded in panic. However, interestingly, while all major coins are experiencing outflows, the SOL ETF has seen a net inflow for 13 consecutive days.

Data shows that the Solana spot ETF has accumulated a net inflow of $370 million since its launch on October 28. Although this number may not seem large (the BTC ETF is dozens of times this amount), what does it mean in the current market context?

**Why are institutions buying SOL on the dip?**

The main reason is the yield. The annualized yield of SOL is about 7%, much higher than ETH's 2%. For traditional financial institutions, this stable staking yield is more attractive than mere price appreciation. The Chief Investment Officer of Bitwise stated bluntly: institutions love ETFs because they love yields, and Solana is the chain with the highest yield.

**What does this mean for the SOL price?**

In the short term, SOL has dropped over 26% from its peak on October 28, with major players like Jump Crypto also selling off. The $370 million inflow from institutions is far from enough to offset this selling pressure.

However, in the long run, institutions have a long holding period and strong bargaining power. They continue to build positions at the bottom, similar to laying the foundation for future price increases. The previous surge of SOL from $152 to $295 was an overdrawn market, and now the old profit-taking positions have been "washed" out, with new institutional buying entering the market – this is usually a precursor to a reversal.

In other words: when retail investors are in a panic, institutions are buying up. This contrast itself is the strongest bullish signal.