Solana News Today: Institutional Money Floods Solana ETFs as Bitcoin, Ethereum Face Exodus

Solana ETFs See Record Demand as Bitcoin and Ethereum Suffer Major Outflows

VanEck's submission of a Form 8-A to the U.S. Securities and Exchange Commission (SEC) for its spot Solana exchange-traded fund (ETF) has accelerated momentum for the asset class, signaling a potential launch as institutional demand for the high-performance blockchain's tokens surges. The filing, reported by multiple sources, follows a $370 million inflow streak into Solana ETFs over 13 consecutive days-the longest such run in the crypto market-despite broader volatility. This contrasts sharply with Bitcoin and Ethereum ETFs, which recorded cumulative outflows exceeding $2 billion in the past week, marking a stark divergence in investor sentiment.

The VanEck product, which includes a 0.30% management fee and plans to stake SOL tokens for yield generation, is one of 14 Solana ETFs either active or pending regulatory approval. Combined reserves held by these funds and institutional treasuries now exceed 24 million SOL tokens- roughly 12% of the circulating supply, a figure underscoring sustained buying interest. Bitwise's BSOL ETF, the largest in the category, has led inflows with $357.8 million since its October 28 launch, while Grayscale's GSOL added $24.4 million during the same period.

Analysts attribute the resilience of Solana ETFs to the network's scalability, staking yields of up to 7.7%, and growing adoption in decentralized finance (DeFi) and non-fungible tokens (NFTs). According to analysts, "Solana ETFs are acting as a high-beta complement to Bitcoin and Ethereum products," said a Bloomberg Intelligence analyst, noting that the asset's performance mirrors Ethereum's pre-ETF approval trajectory. This view is reinforced by derivatives data showing stable open interest of $3.4 billion and modest funding rates, indicating mature market behavior.

Meanwhile, Bitcoin and Ethereum ETFs continue to face outflows. On November 14 alone, Bitcoin ETFs bled $492 million, while Ethereum ETFs lost $177.9 million, extending streaks of three and four consecutive days of redemptions, respectively. CoinShares' James Butterfill cited "monetary policy uncertainty and crypto-native whale sellers" as primary drivers of the exodus. By contrast, Solana's inflows have outpaced both major cryptos for two weeks, with $6.8 million flowing into its ETFs in the week ending November 10.

The regulatory landscape remains pivotal. VanEck's Form 8-A filing, typically a precursor to trading commencement, follows an amended S-1 application outlining staking partnerships and fee structures. Four Solana ETFs are already operational, with ten more awaiting SEC review, a process that could determine the asset's integration into mainstream portfolios. Grayscale's recent introduction of options trading for its GSOL ETF further enhances liquidity, though its price has declined 30% from peak levels.

Market observers project continued institutional accumulation, with VanEck forecasting SOL prices to surpass $500 by year-end. This optimism is tempered by technical indicators showing consolidation around $163 and a bearish RSI reading, suggesting potential for short-term volatility. Nonetheless, the ETF-driven buying frenzy has reduced selling pressure, mirroring Ethereum's post-ETF dynamics.