Solana ETF Breaks Zero-Inflow Streak Despite SOL Price Breakdown

Solana has continued to trade deeply in the red territory, but a sharp rebound in the inflow of its first ETF product has restored hope to investors.

According to data from an investment management company, the first SOL ETF recorded a massive daily inflow on October 7.

The data shows that the Solana ETF has broken its 2-day zero-inflow streak after recording a massive $14.6 million on Monday. This signals resilience among institutional investors, as the massive inflow has coincided with a broad crypto market bloodbath that has seen Solana lose its recent gains.

Solana ETF nets $361 million in just two weeks

The Solana ETF recently began trading in mid-September when an investment giant issued the first U.S. spot Solana staking ETF on September 15.

The Solana-based investment product has continued to make waves, recording consistent massive daily inflows until October 2, when it saw a brief pause in its daily inflows. Notably, the muted activity continued until the second day, seeing $SSK post zero inflows on the 2nd and 3rd of October.

While institutional demand for Solana exposure through the ETF has seen a sharp resurgence, it has resumed its daily inflows since October 6, bringing the total inflows for the fund to a massive $360.9 million as of writing time.

Although Solana's price action over the past days has stirred panic among investors, with its price retracing back to the $220 level, the fresh wave of inflows recorded suggests that institutional participants have continued betting big on the investment product in a bid to position for a potential Q4 recovery.

Solana rally still possible?

Despite the declining momentum and weak investor confidence spurred by the deep price plunge witnessed in the past two days, fresh inflows like this during a price dip are pointers to a bullish signal, even if on-chain activities might be saying otherwise.

Apparently, inflows into the Solana ETF highlight long-term confidence in Solana's ecosystem and its price potential, positioning the leading altcoin to potentially regain momentum while recovering previous highs.

With Solana currently showing a 0.69% decline in its price over the last day, the asset is trading at $221 as of press time. While Solana has remained in the red for over 24 hours, speculators suggest that the price dip might be a potential correction needed to position the asset for breaking the long-anticipated $250 level.