Solana News Today: Solana ETFs Experience Influx While Prices Drop Amid Market Adjustment

The U.S.

(SOL) spot exchange-traded fund (ETF) sector experienced a remarkable start, attracting $199 million in net inflows during its first week as both institutional and individual investors increased their exposure to this high-speed blockchain asset. Bitwise’s BSOL ETF dominated the market, drawing in $197 million over four days, while Grayscale’s GSOL saw $2.2 million in new investments, according to figures from . The swift uptake of these ETFs highlights rising institutional trust in Solana, which is positioning itself as a scalable competitor to and within the digital asset space.

The introduction of U.S.

ETFs has heightened rivalry among crypto investment products. Zach Pandl, Head of Research at Grayscale, estimated these funds could eventually control 5% of Solana’s circulating supply—worth around $5 billion—as investors look for accessible entry points into crypto, according to an . Enthusiasm is driven by Solana’s proof-of-stake model, which offers staking yields up to 5.7% annually for products like GSOL, as well as its popularity among developers due to low costs and rapid transactions. Still, analysts warn that the market is more saturated than when Bitcoin and Ethereum ETFs launched, with numerous single-asset ETPs now available, the XT blog post notes.

Even with strong ETF inflows, Solana’s price has faced challenges, dropping 8% to $186.75 on October 30 and wiping out its gains for the year, according to a

. This downturn happened alongside a major on-chain transfer by Jump Crypto, which sent 1.1 million SOL (worth $205 million) to Galaxy Digital, fueling speculation that the firm was reallocating assets to Bitcoin, the CoinDesk report said. While Bitwise’s BSOL ETF attracted $116 million in net inflows in its first two days, the downward price movement indicates that market forces remain intricate, with institutional moves and broader economic trends shaping investor sentiment.

Nonetheless, these ETF inflows have altered Solana’s supply dynamics. Over the last month, early investors have started selling older coins, but these have been absorbed by regulated investment vehicles. CoinShares reported $381 million in Solana-focused ETF inflows for October, bringing the year’s total to $2.8 billion, according to a

. Bloomberg ETF analyst Eric Balchunas called this a “clear indicator of institutional appetite,” pointing out that ETFs serve as a liquidity sink, helping to dampen short-term price swings.

Looking forward, the continued success of SOL ETFs will depend on ongoing inflows and wider acceptance. While JPMorgan analysts forecast more than $6 billion in first-year inflows for upcoming Solana ETFs from firms such as VanEck and Fidelity, a

notes that risks remain if investor interest declines. The current equilibrium between ETF absorption and early holder sales appears healthy, but any change could put renewed downward pressure on Solana. For now, the market structure for Solana is shifting, with ETFs playing a crucial role in supporting price stability amid ongoing crypto volatility.