Key Insights
- •Solana ETFs saw the largest-ever outflow of $32.19 million, sparking speculations.
- •21Shares Solana ETF (TSOL) recorded a $41.79 million outflow.
- •SOL price pares gains to fall by 2%, triggering concerns about a break below the 2-year trendline.
Spot Solana ETFs recorded the largest-ever outflow of $32.19 million. This comes as 21Shares Solana ETF (TSOL) continues to see outflow.
SOL price also saw a pullback of more than 2% despite inflows in other Solana ETFs and other bullish developments. Will it trigger SOL price to drop below the key 2-year trendline?
Largest Outflow from Solana ETFs Stirs Up Concerns
Spot Solana ETFs saw a net outflow of $32.19 million, according to data on December 4. This was the largest-ever outflow since launch last month.
It was also the second outflow this week despite an uptick in SOL price following a broader crypto market recovery. It raised speculation within the community.
Bitwise Solana Staking ETF (BSOL), Grayscale’s GSOL, and Fidelity’s FSOL saw $5.57 million, $1.55 million, and $1.66 million in inflows.
Meanwhile, the newly launched Franklin’s SOEZ recorded no net inflows. Canary’s SOLC saw the lowest inflows of $817.92K.
Notably, the 21Shares Solana ETF (TSOL) was the only one to record outflow. It saw a $41.79 million redemption from institutional investors.
The selloff from TSOL Solana ETF caused total inflows to drop to $618.62 million. Total AuM also fell back to $915 million.
This comes despite a number of positive news, including Europe’s top neobank Revolut announcing support for Solana payments, transfers, and staking.
Moreover, Solana Mobile revealed details of the SKR native token launch date and tokenomics. SKR token will have 10 billion in total supply and power the Solana Seeker mobile ecosystem.
SOL Price Pares Earlier Gains
SOL price saw a fall by 2% in the last few hours, with the price trading at $142.93 at the time of writing.
It recorded an intraday low and high of $139.37 and $146.72, respectively. Trading volume has decreased by 26% in the last 24 hours.
Crypto analyst Ali Martinez shared a 4-hour chart to highlight a 2-year trendline held by bulls since 2023. SOL price could crash back to $123 if it breaks below $139.
10x Research also pointed out that Solana is trading below the 30-day moving average, which is bearish. The decline in DeFi activity and a 20% drop in network fees during November have impacted sentiment.
CoinGlass data showed mixed sentiment in the derivatives market. At the time of writing, the 24-hour total SOL futures open interest is up more than 1% to $7.47 billion.
The 4-hour SOL futures OI on CME dropped by 1.40% and climbed 1.42% on Binance. This indicates traders are cautious.