- The Solana ETF continued to see inflows for the fourth day in a row, adding $44.48 million on Friday, bringing total assets to more than $502 million.
- Bitcoin and Ethereum ETFs continue to see outflows, with Bitcoin losing $191.6 million in one day due to profit-taking pressure.
- The Solana ETF’s surge is believed to be due to strategic “capital rotation” as investors seek new narratives and staking yields beyond Bitcoin and Ethereum.
- Several new crypto ETFs have entered the market, including Bitwise’s Solana Staking ETF, offering investors exposure to Solana with an estimated 7% staking yield.
- The recent approval of Hong Kong’s first Spot Solana ETF confirms increasing institutional and regulatory acceptance across the region.
Solana ETF gains momentum amid market rotation
The Spot Solana exchange-traded fund (ETF) continued its upward trajectory, posting its fourth consecutive day of inflows as investors shifted their focus away from Bitcoin and Ether. The Solana ETF added $44.48 million on Friday alone, increasing total assets to more than $502 million, according to SoSoValue data. The Bitwise Solana ETF (BSOL) led this inflow, posting a daily gain of nearly 5%, driven by renewed investor interest in Solana’s staking and growth prospects.
In contrast, Bitcoin ETFs continue to experience outflows, with $191.6 million lost in one day. The profit-taking trend has continued for a week, with nearly $500 million in outflows on Thursday and Wednesday. The Ethereum ETF saw a similar pattern, with losses of $98.2 million, further highlighting the shift in investor sentiment.
Market analysts believe this trend is due to “capital turnover,” with investors reallocating funds to alternative blockchain projects with staking-driven yields. Vincent Liu, chief investment officer at Cronos Research, explained that the momentum behind the Solana ETF reflects a new narrative and the search for yield opportunities outside of traditional blue-chip cryptocurrencies.
Analysts predict that Solana’s momentum could continue into next week, unless macroeconomic factors cause major fluctuations, especially if Bitcoin and Ether movements stabilize. This continued rotation signals a changing landscape where altcoins and staking assets are becoming more prominent in the crypto investment space.
Emerging crypto ETF products promote market diversity
This week saw a flurry of new crypto ETFs, highlighting the growing interest from institutional investors. Notably, Bitwise launched the Solana Staking ETF (BSOL) with $222.8 million in assets, offering exposure to Solana with an attractive estimated 7% staking yield. The launch of the ETF reflects a broader trend of innovation in crypto investment vehicles.
In parallel with Grayscale’s plan to convert Solana Trust into an ETF, other funds are also entering the market, including Canary’s Litecoin (LTC) and Hedera (HBAR) ETFs. Additionally, Hong Kong recently approved the first Spot Solana ETF, an important step towards greater regional acceptance and institutional adoption.
The ongoing evolution in the ETF space shows that staking and yield strategies are at the forefront of investor interest, with institutional investors’ appetite for diversified crypto exposure increasing. As the market adjusts, these instruments could shape future trends in crypto investment and regulation.