Solana News Today: Solana ETFs Soar on Institutional Demand, Token Price Stumbles

CoinShares' decision to withdraw its staked Solana (SOL) ETF application from the U.S. Securities and Exchange Commission (SEC) has added complexity to the evolving landscape of crypto exchange-traded funds. The asset manager cited the failure to complete the structuring deal and asset purchase for the fund as the reason for the withdrawal, stating that no shares were issued under the registration. This move follows the launch of competing staked SOL ETFs by REX-Osprey and Bitwise, with the latter amassing $223 million in assets on its first day of trading. Despite these developments, SOL's price has struggled to rebound from its September high of over $250, remaining below $150 amid broader market volatility.

The Solana ETF market has shown resilience, however. Bitwise's BSOL ETF, for instance, has maintained a 21-day inflow streak, accumulating $613 million in net inflows as of November 26. Franklin Templeton's entry into the space with a 0.19% fee ETF further underscores institutional interest, with total assets under management in Solana ETFs nearing $918 million. Yet, this optimism contrasts with the price action of SOL itself, which traded at $142.93 as of late November. Analysts have revised downward earlier projections of $400 for SOL, with some now warning of headwinds to reclaiming $150.

The divergence between ETF inflows and price performance highlights broader market dynamics. While Solana ETFs have bucked the trend of outflows seen in Bitcoin and Ethereum funds, the token's price remains depressed according to recent analysis. This disconnect is partly attributed to technical challenges, including network outages and concerns over reliability. Meanwhile, XRP ETFs have outpaced Solana in recent inflows, with $164 million added on November 25 alone, driven by regulatory clarity and new listings like Franklin Templeton's XRPZ. The contrasting trajectories of these altcoin ETFs reflect investor preferences for assets with clearer narratives and lower perceived risk.

Technical analysis of SOL's price action reveals a critical juncture. The token has stabilized near the $130 support zone, with traders monitoring the $135 and $140 resistance levels. A death cross-a bearish signal where the 50-day moving average crosses below the 200-day moving average has formed, signaling potential for further declines. However, institutional accumulation, including Bitwise's withdrawal of 192,865 SOL from Coinbase, suggests continued long-term confidence. The broader market context is equally pivotal, with the Federal Reserve's rate-cut odds rising to 70%, potentially influencing risk-on sentiment.

Looking ahead, the success of Solana ETFs will hinge on their ability to drive price appreciation and maintain investor confidence. Franklin Templeton's entry and the anticipated launch of additional funds could bolster liquidity, but challenges remain. The recent five-day outflow streak for the 21Shares TSOL ETF, which lost $34 million, underscores the fragility of current momentum. Analysts remain divided: while some project a rebound to $160 by Q1 2026, others caution that macroeconomic factors, such as a Fed pause, could cap gains at $150. For now, the Solana ecosystem's ability to balance institutional adoption with network stability will determine whether the $130 support holds-or gives way to further declines.