While Bitcoin is leading a new rally, Solana sends a much more puzzling signal: capital is exiting ETFs but continues to flow on the blockchain. On one side, 21Shares sees its TSOL crypto ETF lose $42M. On the other, over $321M redeploy directly on-chain on Solana. An apparent contradiction that says a lot about the real state of the market.
In Brief
- •Solana ETFs, especially the 21Shares TSOL crypto ETF, suffer record outflows despite a generally bullish market.
- •These withdrawals mainly reflect a technical rebalancing and rotation towards other products rather than investor capitulation.
- •Paradoxically, capital continues to flow on-chain on Solana, signifying an intact fundamental conviction despite ETF weakness.
TSOL Bleeds, Solana ETFs Drop While Crypto Market Rises
Solana ETFs managed to attract more capital while Bitcoin and Ethereum were experiencing heavy losses. However, this Wednesday, U.S. Solana spot ETFs recorded their largest daily outflow since launch. In one session, nearly $32.2M was withdrawn from these products, mostly from a single fund: the 21Shares TSOL crypto ETF, which lost $41.79M.
This is not an isolated accident. TSOL was already at the center of two other redemption waves since October 28, with $13.55M outflows on December 1 and $8.10M on November 26. In other words, every episode of distrust in Solana ETFs has the same product at its core.
The contrast is striking: this outflow occurs amid a crypto rally led by Bitcoin. Instead of benefiting from the buying trend, Solana ETFs are moving against it, suggesting less a widespread panic than a very targeted adjustment of the most speculative positions.
Technical Rebalancing Rather Than Crypto Investor Capitulation
For several market participants, this is not a true “exit” but rather a simple reset after a long sequence of crypto inflows. After three weeks of sustained buying and high volatility in November, some managers are taking profits, rebalancing their portfolios, and reducing implicit leverage.
A key factor reinforces this interpretation: competition is intensifying. On the same day as this TSOL bleeding, Franklin Templeton launched its own Solana ETF, SOEZ. Part of the rotation can thus be explained by arbitrage between products, with some investors preferring to diversify or test a new issuer deemed more institutional.
Meanwhile, market conditions on crypto and ETFs remain far from an unbridled euphoria. On crypto derivatives, positions remain net-long but are significantly less aggressive than in October. Volatility is still present but more managed than endured. This type of configuration is typical of a market digesting a rally rather than disintegrating.
Solana On-Chain: Capital Continues to Flow Despite Weakness
This migration to on-chain occurs in a very particular context. After the memecoin frenzy peak, on-chain activity began to normalize. Active addresses decline, volumes stabilize, but circulating supply on exchanges decreases and staking yields remain attractive. Less noise, more patient positions.
On the stock market, Solana still stands: around $142.75, the token gains about 1% for the day. The market therefore does not validate the idea of a total loss of confidence. It rather recognizes a tactical repositioning, with investors preferring to manage their risks directly on-chain rather than via a listed product.
The most interesting paradox is here: while ETFs empty, the Solana blockchain fills. Over $321M flowed onto the network in one month, including more than $240M from Ethereum. Large capital does not leave the ecosystem; it only changes channels.