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The long-awaited debut of the Solana spot ETF in the US has attracted solid demand, according to analysts – but you wouldn’t know judging by the SOL. price action.
The token, which reached a high of $205 a day before the ETF’s launch last Tuesday, fell 20% to $165 in a week. It has well undercut the already weak action of crypto majors bitcoin and ether which fell about 6% and 12%, respectively.
All that happened despite Solana-based exchange products booking their second-strongest weekly net inflow last week with $421 million, according to a CoinShares report.
Vetle Lunde, head of research at K33, described the ETF’s first week as “very solid”, adding that it was even more commendable compared to the strong flows of BTC and ETH counterparts.
“The launch of the Solana US spot ETF was a clear success, attracting strong investor demand despite the flow of broader crypto funds,” Lunde said in a note.
Most of the inflow went to Bitwise’s Solana ETF (BSOL), which attracted about $199 million in fresh funds and launched with nearly $223 million in seed capital, according to Data Farside Investors.
That $421 million total made BSOL the week’s top-performing crypto ETF, surpassing even BlackRock’s iShares Bitcoin Trust (IBIT), which saw muted demand as the price of bitcoin continued to fall, CoinShares data showed.
The other spot Solana ETF, Grayscale’s Solana Trust (GSOL), on the other hand, pulled in just $2.2 million. However, it entered the market with $102 million in assets under management after converting from an existing, closed product.
GSOL charges a handling fee of 0.35% – much lower than the 1.5% fee on its bitcoin or ether, GBTC and ETHE products. Even so, Bitwise undercut that with a rate of 0.20% on BSOL.
“BSOL’s lower fees and first-mover advantage have fueled its rapid growth, while GSOL’s higher costs and later debut have tempered inflows,” K33’s Lunde said.
