Solana News Today: Solana ETFs Attract $421M Inflows as Token Price Dives 20%, Sparking Debate

Solana (SOL) Faces Price Decline Despite Record ETF Inflows, Institutional Demand Rises

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Solana's token price fell nearly 20% to $165 in the week following the launch of U.S. spot Solana exchange-traded funds (ETFs), despite record inflows into the products. The disconnect between robust institutional demand and the token's bearish trajectory has sparked debate among analysts, who are weighing whether the ETFs will ultimately support a recovery or if broader market headwinds will prolong the downturn.

The Solana-based ETFs attracted $421 million in net inflows during the period, the second-highest weekly inflow on record for the cryptocurrency, according to data from CoinCentral. Bitwise's BSOL ETF, the largest of the new funds, pulled in $199 million in its first week, outperforming even BlackRock's Bitcoin ETF, which saw outflows during the same period. Grayscale's GSOL ETF, meanwhile, added $2.2 million in fresh capital but entered the market with $102 million in existing assets after converting from a closed-end product.

The price drop contrasts sharply with the optimism surrounding the ETF launches. SOL fell from $205 to $165 amid a broader crypto market selloff, with Bitcoin and Ethereum declining 6% and 12%, respectively, a trend CoinCentral also highlighted. Analysts attribute the divergence to a mix of factors, including risk-off sentiment, leveraged selling, and the timing of institutional inflows. Vetle Lunde, head of research at K33, called the ETF debut "very solid" but noted that "the weak macro environment has amplified short-term volatility."

Technical indicators suggest the bearish pressure is intensifying. The Relative Strength Index (RSI) for SOL stands at 27, indicating the token is in oversold territory, while key support levels at $165 and $162 are under pressure, with further declines potentially targeting $154 and $120 if buyers fail to step in, according to Coinotag. On the daily chart, the price has broken below the 50-day, 100-day, and 200-day exponential moving averages (EMAs), signaling bearish confirmation.

The ETF inflows, meanwhile, highlight growing institutional confidence in Solana's ecosystem. Year-to-date, Solana has attracted over $3.2 billion in institutional inflows, marking 21 consecutive weeks of positive flows, per CoinCentral. Bitwise's lower fee structure (0.20% vs. Grayscale's 0.35%) and first-mover advantage have been key differentiators in the race for capital. "The demand for Solana exposure isn't slowing down," tweeted crypto analyst CryptosRus, citing $70 million in inflows on Nov. 3.

Market participants are also grappling with the performance of Solana treasury firm Forward Industries, whose shares dropped 25% after unlocking $1.58 billion in private placement shares, as reported by Crypto.news. The firm announced a $1 billion stock buyback program to stabilize its share price, but the move comes amid broader risk-off sentiment. Forward's holdings include 6.822 million SOL tokens, purchased at an average price of $232.

The broader crypto market remains under pressure, with over $1.1 billion in liquidations reported in the past 24 hours, according to Yahoo Finance. Bitcoin and Ethereum ETFs saw combined outflows of $327 million as of Nov. 3, contrasting with Solana's inflows, a divergence noted by crypto.news; this underscores a shift in institutional appetite toward high-growth assets like Solana, despite macroeconomic challenges.

Experts caution that the ETF inflows may not immediately translate to price gains. "Institutional capital is accumulating off-chain, but on-chain activity hasn't caught up," said a blockchain analyst quoted in an FXStreet report. Solana's total value locked (TVL) dipped 3% in 24 hours to $10.59 billion, suggesting a lag between ETF flows and protocol-level adoption.

For now, the market is watching for a potential rebound. A close above $172 could trigger a retest of the $180–$182 resistance zone, while a breakdown below $155 could accelerate the decline toward $126, according to FXStreet. "The RSI is near oversold levels, which could prompt a technical rebound if buying pressure builds," said one analyst in a note covered by InvestorEmpires. However, bearish momentum remains strong, with the MACD and EMA indicators favoring further downside.