Solana ETF inflow streak ends at 21 days with an outflow of $8.1M while Bitcoin and Ethereum funds recover.

Source: Yellow Original Title: Solana ETF inflow streak ends at 21 days with an outflow of $8.1M while Bitcoin and Ethereum funds recover

Original Link: The spot (ETF) funds of Solana recorded their first net outflow of 8.10 million dollars on November 26, breaking a streak of 21 consecutive days of inflows that began when the products were launched in late October.

The outflow occurred despite the fact that accumulated inflows reached 613.22 million dollars and total net assets rose to 917.99 million dollars across six funds, according to data from SoSoValue.

The shift occurred when institutional capital rotated towards Ethereum and XRP products, with Ethereum ETFs capturing $60.82 million and XRP funds attracting $21.81 million on the same day. Bitcoin ETFs recorded modest inflows of $21.12 million, suggesting selective positioning by investors rather than a general risk-off sentiment. The outflow in Solana was primarily driven by the TSOL fund from 21Shares, which recorded a redemption of $34.37 million, while Bitwise and Grayscale products continued to attract new capital.

The development comes as Franklin Templeton filed its final regulatory form 8-A with the (SEC) for a spot ETF of Solana with a management fee of 0.19% and a fee waiver on the first $5 billion in assets until May 31, 2026.

The presentation places Franklin Templeton in a position to launch its SOEZ product on NYSE Arca as early as November 27, adding to a competitive landscape that has seen stronger-than-expected institutional demand since Bitwise debuted the first Solana ETF in the United States on October 28.

What happened

The Solana ETFs recorded their first negative daily flow since their inception, with an outflow of $8.10 million representing a strong turnaround from the recent momentum, which had seen the funds capture between $8.26 million and $58 million per day during November. The 21-day streak of inflows had pushed total assets to $917.99 million, approximately equivalent to 1.09% of Solana's market capitalization.

The TSOL product from 21Shares explained most of the redemptions, with an outflow of $34.37 million that brought its accumulated net flows into negative territory at -$26.22 million. Nonetheless, the fund's price gained 3.92% on the day, demonstrating that the outflows did not prevent the underlying asset from appreciating, as Solana was trading near $141, up 3.8% in the session.

The Bitwise BSOL ETF led the inflows with $13.33 million, adding 93,170 SOL tokens and raising its cumulative inflows to $527.79 million, with net assets totaling $631.20 million. Grayscale's GSOL fund attracted $10.42 million and added 72,840 SOL, with net assets reaching $148.28 million. Fidelity's FSOL added $2.51 million on the day, bringing cumulative inflows to $29.89 million, while VanEck and Canary products did not record any flows.

The broadest cryptocurrency ETF market showed divergent patterns. Ethereum spot ETFs recorded their fourth consecutive day of inflows, with $60.82 million entering the funds, marking a turnaround after weeks of outflows that began on November 11. Bitcoin ETFs attracted $21.12 million despite Fidelity's FBTC registering an outflow of $33.3 million, with BlackRock's IBIT capturing $42.8 million and leading the positive flows.

XRP ETFs continued their uninterrupted positive streak with $21.81 million in inflows, bringing the total accumulated flows to $643 million since their launch on November 13. The products have not recorded a single day of outflows since their debut, reflecting sustained institutional interest following the regulatory clarity resulting from the conclusion of Ripple's legal battle with the SEC.

The presentation of Franklin Templeton's Solana ETF marks the asset manager's entry into the Solana market following the successful launch of its XRP ETF, which attracted $62.6 million on its first full trading day. The firm submitted the 8-A form on November 25, representing the final administrative step before trading can begin. The SOEZ ETF will track the CF Benchmarks Solana Index and hold physical SOL tokens in custody, offering a passive investment vehicle with the lowest management fee in the sector.

Why It Matters

The first launch of a Solana ETF tests the strength of institutional demand for the third largest cryptocurrency by market capitalization amid broader volatility. Solana fell 30% in the last month, trading between $125 and $143, while negative perpetual funding rates and declining trading volumes put pressure on the asset. A single-day outflow does not necessarily indicate a trend change, but highlights that institutional appetite for exposure to Solana remains selective even as accumulated flows approach a significant milestone of $1 billion in assets.

The rotation towards Ethereum and XRP products suggests that investors are reallocating capital towards assets with clearer regulatory pathways and more established institutional adoption. The four-day streak of inflows into Ethereum, totaling more than $220 million, followed weeks of intense outflows that saw $1.64 billion leave funds between November 3 and 24. The shift indicates renewed confidence in Ethereum's scaling roadmap and the upcoming network updates, including the Fusaka hard fork on December 3.

Franklin Templeton's aggressive commission strategy cuts all competing Solana ETF offerings and reflects the tactics used during Bitcoin ETF launches, where competition on fees drove rapid asset accumulation. The firm's fee waiver on the first $5 billion until May 2026 could accelerate early adoption and pressure existing issuers to lower their own fee structures. With $1.66 trillion in total assets under management, Franklin Templeton brings institutional credibility that may attract allocators who have so far remained on the sidelines.

The moment coincides with the SEC's guidance that allows for automatic effectiveness under Section 8(a) for filings submitted without delay clauses. This mechanism allows for the launch of ETFs after a standard period of 20 days, unless the SEC intervenes, speeding up the approval process that had been stalled during the government shutdown in October. Bloomberg ETF analyst Eric Balchunas noted that issuers taking advantage of this route could bring products to market quickly, with multiple cryptocurrency ETFs expected to launch in December.

JP Morgan originally forecasted that Solana ETFs would attract between $3 billion and $6 billion in their first 6 to 12 months, but revised its forecasts to approximately $1.5 billion in the first year following the market downturn in October. The funds have already exceeded 60% of the revised forecast in their first month, suggesting that institutional demand remains strong despite price volatility. The growth of the Solana ecosystem —including tokenization projects like xStocks, which bring U.S. stocks to the blockchain, and the expansion of DeFi activity— continues to attract interest from traditional finance.

Final Thoughts

The first day of trading in the Solana ETF market represents a natural consolidation after three weeks of uninterrupted inflows, more than a fundamental shift in institutional sentiment. The redemption of $8.10 million is modest compared to the $613 million in accumulated flows and may reflect short-term profit-taking or rebalancing after SOL's 30% monthly drop. More significant is the pattern of selective capital allocation among cryptocurrency ETFs, with Ethereum and XRP products capturing most of the new investment while flows into Bitcoin remain lukewarm.

The imminent entry of Franklin Templeton adds competitive pressure that could benefit investors through lower fees and a greater variety of products. The firm's success with its XRP ETF, which attracted nearly $70 million in its first two days of trading, demonstrates that established asset managers can quickly capture market share in the altcoin ETF space. If Franklin Templeton's Solana product replicates this performance, total assets in Solana ETFs could exceed $1 billion by early December.

The divergence between the flows into Solana ETFs and the behavior of the underlying token's price highlights that institutional products do not guarantee an immediate price appreciation. SOL has traded in a consolidation range between 125 and 145 dollars despite constant inflows into ETFs, suggesting that retail trader demand and on-chain activity remain the main driver of short-term price action. Analysts have identified a key resistance at 145 dollars, with a possible breakout that could target the 155–175 dollar zone if overall market conditions improve.

The sustainability of demand for Solana ETFs will depend on several factors: the network's ability to maintain high performance without interruptions, the continued growth of DeFi applications and real-world asset tokenization, regulatory developments affecting proof-of-stake networks, and competition from other layer 1 blockchains. Recent concerns about network congestion following the Upbit security incident at the end of November may have contributed to selective institutional caution, although the impact seems limited given that only one fund recorded significant outflows.