SOL Price Holds Steady as ETF Bulls Pause After $600M Haul
- Net flows on Solana ETFs ended with their first outflow of $8.1 million on November 28. This ended a 21-day inflow streak from the ETFs launch on October 28.
- This being said, total net inflows since launch are still positive, rounding out to an impressive $600 million.
- With over $790 million of assets under management, November inflows opened up to $101.7 million, despite the price of SOL falling 30% to $133.
- Outflows on December 1 hit their record high of $13.55 million, as requested redemptions piled high from 21Shares’ TSOL ETF.
- Through all of this, the price of SOL showed resilience in the form of a 3% price increase to $127.53 on December 2, proactive during recent market dips.
With crypto spot ETFs, Solana is encouraged by all the buzz in the crypto markets. However, the customer inflows slowed. How do we explain the recent inflows in the most straightforward fashion? The inflows started in October and ended in November with the ETFs reaping $100 million over the three week period.
Solana investments reaped better investments over the three week period than Bitcoin and Ethereum ETFs which saw net outflows of $3 billion and $1 billion in the same period. The first outflows on November 28 were $8.1 million, the first outflows. The outflows continued on December 1 with $32.54 from 21Shares’ Solana ETF (TSOL) which is the majority of the $60.14 million outflows. Bitwise ETF BSOL and Grayscale ETF GSOL had $17.18 million and $1.82 million respectively.
This diversity in net outflows from the ETFs gives the impression that some crypto investors prefer buying Digital Gold over Bitoin. Instead, the XRP ETFs have been performing incredibly well, attaining $90 million during this event, the ETF’s $4th biggest inflow ever. Grayscale’s GXRP led the pack with inflow amounts of $52.30 million. It seems that the most prominent players have been moving on from BTC and ETH, and have shifted their focus to other altcoins like SOL and XRP that hold the promise of further growth.
SOL’s price was the most negatively impacted during this event, with inflows across the board. It November saw a decline of 30% on a price point of $123. This price was the lowest seen on the 1st of December, with $127.53 being the price on the 2nd. Overall trading volume was down 3% suggestive of declining interest, however, the open interest with regards to the derivatives dropped as well, showing that the bearish sentiment surrounding the market might go away.
