Bitcoin News Today: Institutions Shift to Solana as Bitcoin ETFs Lose $1.2B

The crypto market has shown a mixed performance in recent weeks, with stark contrasts between Bitcoin's struggles and the resilience of altcoins like Solana. While Bitcoin and Ethereum ETFs faced significant outflows, Solana-based products attracted record inflows, signaling a shift in institutional appetite toward high-performance blockchains.
Analysts are now debating whether this divergence reflects a broader market reset or a temporary correction in a long-term bull cycle according to data.

Bitcoin ETFs recorded $1.22 billion in outflows last week, according to data, with Ethereum trailing at $438 million. Short Bitcoin ETPs, however, saw a rare $11.8 million inflow—the strongest since May 2025 according to reports. This selling pressure coincided with Bitcoin's price hovering near $105,000, testing key resistance levels. Despite the bearish trend, Glassnode analysts noted early signs of stabilization, including a 3% rebound from $100,000 support and surging spot trading volume to $14.1 billion on Monday.

In contrast, Solana ETFs logged $118 million in inflows last week, bringing their nine-week total to $2.1 billion. This surge has driven infrastructure upgrades, with Web3 provider Alchemy rebuilding its Solana stack to meet institutional demand. The overhaul, developed in collaboration with Solflare and Robinhood, promises 20x faster archive calls, 99.95% uptime, and doubled throughput. Such developments have positioned Solana as a top alternative for investors seeking exposure beyond Bitcoin and Ethereum.

The broader ETF landscape revealed a sharp divergence in sector flows. Energy sector funds attracted $427.57 million in inflows, while nine of 11 S&P 500 sectors saw outflows, led by Consumer Staples (-$588.82 million) and Financials (-$203.67 million). This trend underscores a shift toward defensive assets and high-growth tech alternatives, with crypto investors increasingly differentiating between projects based on network performance and ecosystem development.

Bitcoin's near-term outlook remains uncertain. While a modest $1.15 million inflow into U.S. spot Bitcoin ETFs on Monday offered a glimmer of hope, analysts at Bitfinex caution that the market is in a "mid-cycle consolidation phase" rather than a bear market. Historical corrections of 22% from all-time highs have typically preceded recoveries, and 72% of Bitcoin supply remains in profit at current levels, suggesting a potential rebound according to analysis.

Market participants are closely watching for renewed institutional demand, particularly as macroeconomic clarity and regulatory updates could reignite inflows. For now, Solana's infrastructure gains and Bitcoin's stabilizing price action highlight a market balancing caution with cautious optimism.