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

Recently, important developments have been occurring in the cryptocurrency market, particularly highlighting a situation that has caught the attention of Solana (SOL) investors. The long-awaited launch of spot Solana ETFs in the US has created significant demand; however, it has yet to have a positive impact on the SOL price. Prior to the launch of the Solana ETFs that hit the market last Tuesday, the price of SOL had risen to $205, yet within just a week, it has declined by %20 to $165.

This performance appears quite weak when compared to leading cryptocurrencies such as Bitcoin (BTC), which only dropped %6, and Ethereum (ETH), which declined by %12 during the same period. However, according to CoinShares data, Solana-based investment products experienced their second strongest week in history with a total 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 US is a clear success and reflects strong investor demand.

The prominent inflow of $421 million largely went to the Bitwise Solana ETF (BSOL) product. Bitwise attracted approximately $199 million in new funds, starting to trade with an initial capital of $223 million. According to CoinShares data, BSOL became the most sought-after crypto ETF of the week and even outperformed BlackRock’s Bitcoin ETF IBIT. Another Solana ETF, the Grayscale Solana Trust (GSOL), recorded only $2.2 million in inflows. GSOL entered the market with $102 million in managed assets as it was previously converted from a closed-end fund.

Despite GSOL having a management fee of %0.35, Bitwise’s lower fee policy of %0.20 and its early launch advantage attracted investor interest towards BSOL. Lunde noted that the lower fees and early start of BSOL accelerate its growth while GSOL's higher costs limit inflows. Thus, while the ETF demand represents a significant development for Solana investors, price movements should be monitored closely.