Solana ETFs Surge Amid Shifts From Bitcoin and Ethereum
By: Eva Baxter
Solana has recently captured significant attention in the crypto sector, primarily due to its exchange-traded funds (ETFs) gaining traction amidst capital rotations from Bitcoin and Ethereum. Over the past week, Solana ETFs have consistently experienced inflows, highlighting growing interest from investors seeking alternative options in the volatile crypto market. According to reports from financial data analysts at SoSoValue, Solana ETFs added $44.48 million in a single day, boosting their cumulative inflows to $199.2 million. This surge places the total assets of Solana ETFs at over $502 million, with the Bitwise Solana ETF taking the forefront through a striking daily gain of 4.99%.
The trend starkly contrasts with the performance of Bitcoin ETFs, which have seen massive outflows thanks to recent profit-taking activities. For instance, on a comparable day, Bitcoin ETFs reported net outflows of $191.6 million, contributing to a week-long trend where Thursday alone saw $488.43 million leaving Bitcoin-related funds.
Further helping the momentum for Solana is its breach of the critical $180 price level, eliciting significant attention from market analysts. As of now, Solana is valued around $186, recovering slightly from a turbulent trading period characterized by volatile swings and bearish sentiments, resulting in an approximate 4.37% net loss. However, supported by the 200-day simple moving average, Solana's stability at this price point provides a basis for potential upward moves towards $230 and beyond, according to analysts' projections. Nonetheless, below this pivotal marker, the altcoin might dip to as low as $50 if bearish pressures intensify.
In tune with these market shifts, several institutional instruments have entered the scene, such as the Bitwise Solana Spot ETF and the Grayscale Solana Trust. These newly introduced options signal a broadening institutional interest in Solana, potentially enhancing market participation beyond traditional crypto leaders. Notably, this week witnessed the two ETFs securing $154.73 million in net inflows and accumulating net assets worth $439.97 million within just three days of trading. Looking ahead, an additional array of Solana-linked ETFs are on the horizon, pending necessary approvals, including efforts by Canary, VanEck, and CoinShares to launch similar funds.
