Solana Price Does Not Align with ETF Demands: 20% Decrease

Recently, significant developments have occurred in the cryptocurrency market, particularly concerning Solana (SOL) investors. The long-awaited launch of spot Solana ETFs in the U.S. has generated substantial demand, yet it has not yet positively reflected on the SOL price. Just before the launch of the Solana ETFs, which were released last Tuesday, the SOL price had risen to $205, but within just one week, it fell to $165, marking a 20% decline.

This performance is considerably weak compared to prominent cryptocurrencies like Bitcoin (BTC), which only dropped 6%, and Ethereum (ETH), which fell 12%, during the same period. However, according to CoinShares data, Solana-based investment products experienced their second strongest week ever, with a net inflow of $421 million last week. Vetle Lunde, research director at K33 Research, described this situation as ‘very solid,’ stating that the launch of the spot Solana ETFs in the U.S. has been a clear success, reflecting strong investor demand.

The notable inflow of $421 million was largely directed toward the Bitwise Solana ETF (BSOL) product, which began trading after attracting approximately $199 million in new funds, starting with an initial capital of $223 million. According to CoinShares, BSOL became the most sought-after crypto ETF of the week, even surpassing BlackRock’s Bitcoin ETF, IBIT. On the other hand, another Solana ETF, Grayscale Solana Trust (GSOL), only recorded an inflow of $2.2 million. GSOL entered the market with $102 million in managed assets, having previously transitioned from a closed-end fund.

Despite GSOL having a 0.35% management fee, the Bitwise ETF's lower fee policy of 0.20% and its early launch advantage led to increased investor interest in BSOL. Lunde noted that the low fees and early start of BSOL accelerate its growth, while the higher costs of GSOL limit inflows. Thus, while the ETF demands are significant for Solana investors, price movements should be closely monitored.