Solana ETFs See First Drop After Strong Start

Solana's ETFs experienced their first decline since their launch, with a notable outflow of $8. 10 million on a recent Wednesday. This marks the end of a 21-day streak of continuous inflows. Despite this setback, Solana's price has shown resilience, trading around $141, up approximately 3. 6% in the last 24 hours. The outflow was primarily due to a significant redemption of $34. 37 million from 21Shares’ TSOL fund. However, this was partially balanced by inflows into other Solana ETFs, such as Bitwise’s BSOL, which saw an inflow of $13. 33 million, and Grayscale’s GSOL, which attracted $10. 42 million. Currently, the total assets under management for Solana ETFs stand at around $915 million. This amount is relatively small compared to Solana's overall market cap of $79 billion, representing just about 1. 15%. Analysts suggest that the outflows might be part of a broader trend where investors are moving away from riskier altcoins. They are opting for assets perceived to have better adoption or regulatory clarity. This shift could indicate a strategic reallocation rather than a loss of confidence in Solana itself. In contrast, other altcoin ETFs like those tracking XRP have seen positive net flows since their debut. The Dogecoin ETF, launched just a few days ago, has already accumulated $6. 48 million in assets, though this is a tiny fraction of Dogecoin's $23 billion market cap. The Litecoin ETF, launched on October 28, has not seen any outflows but has also not experienced significant growth since mid-November. Solana's price performance over the past 30 days has been lackluster, with a decline of around 30%. This drop is even more pronounced when compared to its all-time high of $293. 31, where it is now down by more than 50%.