Solana exchange-traded funds (ETFs) experienced their largest single-day outflow ever on December 4, marking a significant shift in the market. While this reflects a notable setback for Solana ETFs, the broader on-chain activity tells a much different story of resilience and growth.
Record Outflows for Solana ETFs
According to data reported by SoSoValue, Solana’s ETFs registered a combined outflow of $32.19 million on Wednesday, the third and largest such occurrence since October 28. Notably, the entirety of the outflow was attributed to 21Shares’ TSOL product, which alone saw a $41.79 million redemption.
Despite these significant outflows, other competing Solana ETFs managed to attract minor inflows, offering a degree of offset. Franklin Templeton’s newly launched Solana ETF (SOEZ), debuting on the same day, has started to attract attention as a competitive alternative for investors looking to maintain exposure to Solana.
What Experts Are Saying
Market analysts like Vitaliy Shtyrkin, the Chief Product Officer at B2BINPAY, interpret the situation as a likely “position reset” following weeks of robust inflows. This adjustment also coincides with increased price stability and a broader recovery in the crypto market led by Bitcoin.
“This doesn’t signal an exit, rather it reflects longer-term conviction,” Shtyrkin remarked, referring to growing interest in Solana’s fundamentals despite the ETF redemptions.
On-Chain Strength Underscores Solana’s Resilience
A stark contrast to ETF outflows can be observed on-chain. Over the past month, Solana witnessed a $321 million capital influx on its network, with Ethereum contributing over $240 million of the total. The shift hints at growing adoption and demand for Solana as a high-performance layer-1 blockchain.
Staking yield stability and declining exchange supply further reinforce Solana’s long-term outlook. Industry experts claim that while current derivative positioning is less aggressive compared to October, active on-chain activities lend an optimistic perspective for Solana’s future.
Solana’s Market Outlook
As of December 4, Solana’s price stood at $142.75, reflecting a modest 1.1% increase for the day. However, short-term sentiment among traders remains cautious, with prediction market Myriad estimating a 95% likelihood that Solana won’t break its all-time high before year’s end. Fed rate decisions and upcoming economic data announcements could act as macro pressure points for the cryptocurrency sector overall.
Despite ETF outflows, Solana’s growth momentum continues to underline its long-term investment potential. Those interested in exploring opportunities in crypto ETFs might consider Franklin Templeton’s Solana ETF (SOEZ), designed to provide seamless exposure to the Solana ecosystem. Find more details here.
