Solana ETFs Remain Strong, But SOL Erodes Years of Rise: What Now?

Spot Solana Exchange-traded funds (ETFs) have gotten off to a flying start, with an impressive inflow of over $400 million in just one week. This reflects strong institutional demand for the Solana network's native asset. On Monday, daily inflows reached a record high of $70 million, the highest since its launch on October 28, bringing total inflows into these ETFs to $269 million.

Bitwise data shows that the two Solana ETFs, the Bitwise BSOL US Equity and Grayscale GSOL US Equity, combined for net inflows of $199,2 million in their first week, excluding initial capital injections. Bitwise's BSOL ETF was the clear leader, with Total Assets Under Management (AUM) of $401 million as of October 31, representing over 9% of global AUM. SOL ETP AUM and a whopping 91% of global SOL ETP inflows last week. In contrast to this strong performance, Grayscale's GSOL US Equity only generated $2,18 million in inflows, representing approximately 1% of total ETP inflows.

Overall, net inflows into Solana ETPs this week surpassed $400 million, marking the second-highest weekly inflow ever. The BSOL ETF also confirmed its position as the best-performing crypto ETP globally, ranking 16th among all ETPs across asset classes this week.

The total AUM for Solana ETPs currently stands at $4,37 billion, with US-listed products largely accounting for the new investments. It is estimated that a net inflow of $1 billion could result in a potential 34% increase in value for SOL, based on a beta sensitivity of 1,5.

Solana's Volatile Price Movement

Despite these record inflows, the price of SOL has seen a sharp decline of over 16% this week, reaching $148,11 on Tuesday, its lowest level since July 9. This correction ended a 211-day uptrend that began on April 7, with the $95 level forming the yearly bottom.

Solana is currently testing a daily order block between $170 and $156, a zone where support is limited. The recent further decline has pushed the price below the 50-day, 100-day, and 200-day exponential moving averages (EMAs), indicating potential bearish confirmation on the daily chart.

However, with the liquidity levels around $155 now being tested, SOL has the chance of a mean reversion, provided buyers can hold this zone. This possibility is reinforced by the fact that the relative strength index (RSI) has reached its lowest level since March 2025.

However, a break below $160 and subsequent failure to hold $155 could pave the way to the next downside target between $120 and $100. This potentially initiates a deeper correction phase, unless a short-term recovery becomes visible soon.

Frequently Asked Questions

How are recent inflows into Solana ETFs impacting SOL's price?
Recent inflows into Solana ETFs indicate significant institutional confidence in SOL. This could positively impact the price, especially if confidence persists and new investments continue to flow in.

What are the critical levels for the price of SOL?
Key levels include $155 as support; a break below this could lead to a further decline into the $120-$100 range. On the other hand, a rise above $170 could revive bullish momentum.

What can investors expect from the Solana market in the near future?
Investors should be prepared for volatility given the current price movements and trends in the crypto market. It's crucial to closely monitor ETF inflows and the strength of technical levels.