The introduction of spot Solana (SOL) exchange-traded funds (ETFs) in the United States has attracted significant investor interest, despite a notable decline in the SOL token’s market price.
Following the launch of these U.S.-based Solana ETFs last week, the token’s price experienced a sharp drop, falling approximately 20% from a high of $205 to around $165 within seven days. This decline contrasts with the relatively milder downturns observed in major cryptocurrencies such as bitcoin (BTC) and ether (ETH), which declined roughly 6% and 12%, respectively, over the same period.
However, the weak price performance of SOL did not hinder inflows into Solana-focused exchange-traded products. Data from CoinShares reported that these products recorded their second-largest weekly net inflow ever, totaling $421 million. Analysts note that this strong capital injection signals sustained investor appetite for exposure to Solana through regulated ETF vehicles.
Vetle Lunde, head of research at K33, characterized the debut week of the Solana ETFs as “very solid,” especially when juxtaposed with the broader trend of outflows seen in BTC and ETH funds. He highlighted that the launch “has been a clear success,” attracting robust demand despite the wider crypto market downturn.
Among the newly launched products, Bitwise’s Solana ETF (BSOL) emerged as the primary beneficiary of investor interest, drawing approximately $199 million in fresh capital during the week. The fund began trading with close to $223 million in seed assets, according to Farside Investors data. This substantial inflow positioned BSOL as the best-performing crypto ETF of the week, outperforming even the established iShares Bitcoin Trust (IBIT) managed by BlackRock, which experienced comparatively modest inflows as bitcoin’s price slid.
Conversely, Grayscale’s Solana Trust (GSOL) saw a much smaller increase, adding only $2.2 million in net inflows. However, this figure belies its entry into the market with roughly $102 million in assets under management after transitioning from a pre-existing closed-end fund. GSOL carries a management fee of 0.35%, notably lower than the 1.5% fees typically charged by Grayscale’s flagship bitcoin and ether funds, GBTC and ETHE. Still, BSOL’s more attractive 0.20% fee coupled with its status as the first U.S. spot Solana ETF contributed to its faster growth, according to Lunde.
In summary, despite SOL’s significant price retreat following the ETF launches, investor demand for Solana-backed ETFs remained robust during their inaugural week. The market response highlights a divergence between spot price movements and appetite for regulated investment products tied to the Solana ecosystem.
