Solana News Today: Shifting Risk Appetites Drive Solana ETF Outflows

Solana's spot exchange-traded funds (ETFs) experienced their first outflows since inception, marking a reversal in the altcoin's institutional momentum. On Wednesday, the 21Shares Solana ETF (TSOL) saw a $34.37 million net outflow, the largest single-day withdrawal for the product and a key contributor to a $8.1 million group-wide outflow. This ended a 17-day streak of cumulative inflows that had driven total net inflows to $476 million, with Bitwise's BSOL ETF dominating much of the capital influx. The outflows followed a broader rotation of investor capital across crypto assets, reflecting shifting risk appetites amid volatile market conditions.

Despite the outflow reversal, Solana's price held steady near $141, with a 3.5% daily gain, though technical indicators painted a bearish picture. The token remains below critical moving averages, including the 50-day and 200-day EMAs at $173 and $180, respectively according to analysis. The MACD indicator, still in negative territory, showed improving momentum toward the zero line, while the RSI at 38 signaled subdued buying pressure. Analysts warned that a break below the $140 resistance level could trigger a deeper correction to $120, with further downside to $100 if a bear flag pattern on the six-hour chart materializes.

The ETF outflows coincided with broader market weakness in Solana's ecosystem. Total value locked (TVL) on the network fell 20% month-to-date to $9.1 billion, with key protocols like Jito and Jupiter seeing double-digit declines in liquidity. Network activity also waned, with active addresses dropping 6% and fees falling 16% in the past week according to data. These trends contrasted with the resilience of XRP ETFs, which continued to attract inflows despite broader crypto market declines.

Institutional positioning, however, remained robust. According to the Solana Strategic Reserve, Solana ETFs collectively hold 6.83 million tokens, valued at $964 million. Bitwise's BSOL ETF added $13 million in inflows on Wednesday, while Grayscale's GSOL and Fidelity's FSOL also saw modest capital inflows. Long-term optimism persists among some analysts, who cited strong on-chain activity and a proposed inflation reduction plan as potential catalysts for Solana's 2026 price targets.

The market's fragility was further tested by the Upbit hack, which saw $36 million stolen from the exchange's Solana hot wallet on November 27. While Upbit pledged to cover losses, the incident froze liquidity and amplified short-term volatility according to reports.

Looking ahead, the crypto market's fate may hinge on the Federal Reserve's December rate decision. With a 70% probability of a 25-basis-point cut, risk-on sentiment could return, potentially benefiting assets with strong institutional narratives according to analysis. However, analysts cautioned that any rally would likely be selective, favoring projects with clear use cases and regulatory clarity. For Solana, the path to recovery depends on stabilizing network metrics, reversing the ETF outflow trend, and reclaiming key technical levels.