Solana bulls hit the pause button after pumping millions into U.S.-listed spot exchange-traded funds (ETFs) that ignited the market in November.
Data from data source SoSoValue showed that these spot ETFs experienced a cumulative outflow of US$8.1 million on Friday, the first outflow since their launch on October 28. Buyers returned on Friday, pumping more than $5 million into the ETF, a figure that was reversed on Monday as the fund processed $13.55 million worth of redemptions.
The pause in demand comes after a three-week inflow trend that has set the SOL ETF apart from Bitcoin and Ethereum, which lost billions during the market’s rout in November.
In addition, since its debut on October 28, the SOL ETF has recorded net inflows of more than $600 million, with Bitwise Solana ETF (BSOL) net inflows of more than $540 million. Grayscale’s GSOL is a distant second, with net inflows of nearly $80 million since launch.
In the same time frame, cryptocurrency investors have withdrawn more than $3 billion and $1 billion from BTC and ETH ETFs respectively.
The broader performance of the SOL ETF is evidence of growing institutional interest beyond BTC and ETH. On November 21, Franklin Templeton officially filed an application for the Solana ETF with the U.S. Securities and Exchange Commission (SEC), citing continued demand for alternative investment vehicles that can provide investment in programmable blockchain-native tokens without the need to own it.
