Solana News Today: Solana ETFs Attract $421M Inflows as Price Dives 8%, Highlighting Institutional-Sentiment Divergence

Solana (SOL) fell 8% on Thursday, extending a week of declines despite the debut of the first U.S. spot-based Solana ETFs, which drew over $421 million in inflows, according to an Economic Times report. The price drop erased all year-to-date gains for the token, which now trades at $167, down 17% weekly, according to a TradingView analysis. Analysts warn that Solana risks a further 30% correction if it fails to reclaim key support levels, potentially pushing the price toward $115, the TradingView piece added.

The Bitwise Solana Staking ETF (BSOL) led the inflow surge, attracting $197 million in its first four days, while the Grayscale Solana Trust (GSOL) added $2.2 million, per a TradingView U.Today report. Despite these figures, Solana's price continued to slide, underscoring a divergence between institutional investment and short-term market sentiment, as noted in a Yahoo Finance report. On-chain activity also weighed on sentiment, with a notable 1.1 million SOL transfer from Jump Crypto to Galaxy Digital sparking speculation that the firm was rotating exposure to Bitcoin, according to a CoinDesk article.

The ETF inflows contrasted sharply with outflows from Bitcoin and Ethereum funds. Bitcoin ETFs saw $543.59 million in redemptions, while Ethereum ETFs lost $210.43 million, driven by BlackRock's large-scale withdrawals, according to a Coinotag report. This capital rotation highlights growing institutional interest in high-performance blockchains like Solana, which offers faster transaction speeds and staking yields of around 7%, as a Coinotag follow-up noted.

Technical indicators suggest the market is at a critical juncture. Solana has fallen below its 200-day exponential moving average, and derivatives data show bearish momentum, with long liquidations outpacing shorts by a ratio of nearly 23:1 over the past 24 hours, based on a FXStreet analysis. Analysts like Ali Martinez caution that a breakdown below $180 could trigger a cascade to $158 and, if unsuccessful, as low as $115, the TradingView analysis warned. Conversely, Bitwise CEO Hunter Horsley remains bullish, arguing that ETF investors are long-term oriented and that Solana's role in stablecoin and tokenization infrastructure positions it for growth, the TradingView coverage added.

While the near-term outlook is mixed, the ETF launches signal maturing crypto adoption. Bitwise's BSOL, with its 0.20% fee—lower than Grayscale's 0.35%—attracted nearly ten times more inflows than BlackRock's Bitcoin ETF in its first week, according to the Yahoo Finance report. This success, however, has not yet translated to price stability, as traders remain cautious amid broader market volatility, the Economic Times report observed.

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