Solana News Today: Solana ETFs Draw $370M as Price Falls 34%-Institutional Confidence Contrasts Bearish Outlooks

Solana's spot ETFs continued to attract institutional capital despite a sharp price correction in the cryptocurrency, with the U.S. Solana ETF experiencing a net inflow of $12 million on Thursday alone, pushing total assets under management beyond $533 million. Over the past 13 days, cumulative inflows have reached $370 million, driven by products like Bitwise's BSOL and Grayscale's GSOL.

However, the price of SOL has fallen more than 34% in two weeks, breaching key technical levels such as the multi-year uptrend and 100-week simple moving average, highlighting a divergence between ETF demand and market sentiment.

The resilience of ETF inflows contrasts with broader crypto market outflows, as Bitcoin and Ethereum ETFs lost over $1.1 billion in a single day. Analysts attribute this to macroeconomic risk-off sentiment, with technical indicators like the RSI hitting April 2025 lows and UTXO Realized Price Distribution (URPD) data suggesting limited buy support below $140. If this level fails, the 200-week SMA near $100 could become the next critical buffer, though further declines to $95 remain a risk.

Institutional confidence in Solana appears undeterred. Despite a 4% drop in 24 hours and over 20% in 11 days, ETF inflows surged for the 11th consecutive day, totaling $351 million. The New York Stock Exchange (NYSE) recently launched options trading for Solana ETFs, a first for the ecosystem, allowing investors to hedge or speculate on price movements. Teddy Fusaro, Bitwise's president, called the move a "remarkable" milestone for institutional-grade strategies.

Yet, retail traders have taken a more cautious stance. Analyst AB Kuai Dong noted on X that Solana ETF inflows are rising faster than the price drop, raising questions about sustainability. Meanwhile, declining inflows in recent days - falling to $6.78 million on November 10 - signal waning enthusiasm, with Grayscale's GSOL lagging behind Bitwise's BSOL in cumulative demand.

The market's mixed signals were further complicated by the launch of the Canary Capital XRP ETF, which outperformed Solana's offerings with $58 million in day-one trading volume. This has intensified competition among altcoin ETFs, with VanEck's filing for a third U.S. Solana ETF signaling regulatory progress and expanding institutional access.

Technical indicators remain bearish, with the RSI near 40 and MACD below zero, suggesting continued downward pressure unless key supports hold. If the $144 level fails, Solana could retest $120 in November, with a potential slide to $80 by December under deteriorating conditions.

The ETF landscape is evolving rapidly. Bitwise's first-mover advantage in launching the Solana ETF during the SEC shutdown has forced competitors to accelerate their strategies, with firms like VanEck and Fidelity adjusting registration statements to follow suit. Industry executives describe the race to launch altcoin ETFs as a high-stakes game, where first-mover benefits could drive significant capital inflows.

As Solana navigates this volatile environment, investors are advised to monitor both technical supports and macroeconomic cues. While institutional demand provides a foundation for long-term confidence, short-term corrections and regulatory developments will likely dictate near-term price action.