Solana ETF defies the trend to attract funds: 7 consecutive days of capital inflow highlight institutional long-term confidence

Article: White55, Mars Finance

Despite the continuous pressure on Solana (SOL) token prices, its spot ETF has demonstrated strong capital attraction capabilities. According to Farside Investors data, the Solana ETF has experienced net capital inflows for seven consecutive days, with a total net inflow approaching $700 million. The highest single-day inflow occurred on December 12, reaching $16.6 million. This phenomenon contrasts sharply with the weak trend of SOL prices, which have fallen nearly 55% from their January all-time high, reflecting that institutional investors may be positioning for the long term within the Solana ecosystem.

1. Capital Inflow Structure: Bitwise Dominates, Staking Mechanism as Key Attraction

Capital inflow into SOL ETF. Source: Farside Investors

The Solana ETF has a high concentration of capital, with Bitwise’s BSOL ETF being the main contributor. Its managed assets have surpassed $6 billion, accounting for over 90% of the overall inflow. This advantage stems from its product design: BSOL allocates 100% of its custodial assets to on-chain staking, with an annual yield of approximately 5%-7%, providing investors with a dual return of “price exposure + staking yield.” In comparison, Grayscale’s GSOL only stakes 77% of its assets and charges a higher management fee (0.35%), making it less attractive.

Additionally, traditional asset management giants like Franklin Templeton have entered the space, further enriching the product matrix. The staking yields from such ETFs are directly reflected in the fund’s net asset value through compounding effects, rather than being distributed as cash dividends, aligning better with long-term allocation needs.

2. Price and Capital Flow Decoupling: Short-term Selling Pressure vs. Long-term Value

Price trend of SOL from November 2024 to December 2025. Source: TradingView

Despite continuous ETF capital inflows, SOL prices have fallen about 47% from their local high in September and remain below the 365-day moving average in the long term. This decoupling is mainly driven by three factors:

Macroeconomic Market Pressure: Large-scale net outflows occurred simultaneously in Bitcoin and Ethereum ETFs (approximately $3.48 billion and $1.42 billion respectively), dragging down overall crypto market sentiment.

Profit-taking by Speculators: After ETF approval, a “buy the rumor, sell the fact” pattern emerged, with some early investors cashing out profits.

Whale Sell-offs: For example, Jump Crypto once sold 1.1 million SOL (about $20.5 million) in late October, creating strong short-term selling pressure.

However, on-chain data shows that some institutional investors are quietly accumulating during the dip. For instance, a mysterious whale transferred a total of 1.57 million SOL (about $32.9 million) from platforms like Coinbase to private wallets, indicating long-term bullish confidence.

3. The Innovation Significance of ETFs: From Price Exposure to Financialized Yield

The core breakthrough of the Solana ETF lies in the legalization of staking yields.

By integrating on-chain staking mechanisms into traditional financial products, investors can participate in network governance and earn yields without directly holding tokens. This model has been called “interest-bearing assets” by Matt Hougan, Chief Investment Officer of Bitwise, and is especially attractive to traditional financial institutions in a low-interest-rate environment.

Furthermore, the SEC’s tacit approval of staking clauses marks a shift in regulatory attitude. Previously, Ethereum ETFs had to remove related staking provisions due to regulatory concerns, but the successful listing of the Solana ETF opens a compliant pathway for more PoS assets.

4. Future Outlook: Institutional Divergence and Ecosystem Fundamentals

Despite strong capital inflows, institutional attitudes toward Solana are divided:

Bullish Camp: Zach Pandl, Head of Research at Grayscale, predicts that the Solana ETF could absorb about 5% of the total supply (around $5 billion).

Cautious Camp: Institutions like BlackRock believe that the Solana ecosystem is overly dependent on Meme coin trading, posing speculative risks.

The ecosystem’s fundamentals remain key to long-term value. Announcements such as Western Union issuing stablecoins on Solana, along with improvements in network throughput and developer activity, are gradually strengthening its positioning as “financial infrastructure.” If Solana can continue optimizing network stability and expanding enterprise applications, the long-term effects of ETF capital inflows are expected to gradually translate into price appreciation.