Solana Latest Updates: Bitcoin ETFs See $3.79B Outflow as Solana Rises—CoinShares Withdraws Application

CoinShares Withdraws Staked Solana ETF Filing Amid Shifting Crypto ETF Trends

CoinShares has decided to retract its application with the SEC for a staked Solana exchange-traded fund (ETF), signaling a significant shift in the crypto ETF sector. This move comes as institutional investors increasingly redirect funds from Bitcoin into alternative digital assets such as Solana.

Recently, Bitcoin ETFs have experienced considerable capital outflows, while Solana ETFs have seen unprecedented inflows. This trend is largely fueled by Solana's attractive staking rewards and lower associated fees. Notably, in mid-November, Bitcoin ETFs suffered a single-day outflow of $900 million—their second-largest since launching in January 2024—as Bitcoin’s price dipped below $95,000 for the first time in half a year. Over the course of the month, Bitcoin ETFs saw redemptions totaling $3.79 billion, marking their highest monthly outflow to date. In contrast, Solana ETFs attracted $531 million in their debut week, with total inflows reaching $621 million by late November, even as the broader crypto market lost $230 billion in value.

Why Investors Are Turning to Solana

This divergence in investor preference is driven by several factors. Solana offers staking yields around 7%, and its ETF fee structures are more competitive than those of Bitcoin. Unlike Bitcoin, which lacks a built-in staking mechanism and is primarily a price-driven asset, Solana ETFs provide investors with the opportunity to earn additional returns through staking rewards.

These advantages have made Solana particularly appealing to institutions seeking both growth and yield. For example, Bitwise’s BSOL ETF led the surge in inflows, attracting $30.9 million in a single day on November 25. Analysts point to Solana’s robust blockchain infrastructure and its expanding use in tokenization projects as key reasons for its growing reputation as a “blue-chip” digital asset.

Regulatory Changes Fuel Altcoin ETF Growth

This shift is also part of a broader regulatory transformation under SEC Chairman Paul Atkins. The SEC’s Project Crypto initiative has streamlined the approval process for compliant ETFs, paving the way for a new wave of altcoin ETFs. Grayscale is set to launch Dogecoin (GDOG) and XRP (GXRP) ETFs on the NYSE starting November 24, replacing private trust models with regulated, exchange-traded products that offer improved custody and liquidity. The approval of several XRP ETFs, including a pending product from Franklin Templeton, highlights the SEC’s openness to expanding crypto investment options.

Market Volatility and Solana’s Resilience

Despite growing optimism, Bitcoin’s market depth has dropped 30% from its 2025 highs, increasing price swings during periods of outflows. Ethereum ETFs have also seen significant redemptions, totaling $1.64 billion in November. Amid these challenges, Solana stands out as the only major crypto asset with consistent ETF inflows. Although Solana’s price is currently around $139—still 52% below its January 2025 peak—it has maintained stability thanks to ongoing ETF demand. Raj Gokal has described Solana’s 21-day streak of inflows as “greatly underappreciated,” emphasizing its stabilizing effect during a broader market downturn.

The Evolving ETF Landscape

The competition among crypto ETFs is intensifying. Franklin Templeton is preparing to introduce its Solana ETF on NYSE Arca as soon as November 26, following Canary Capital’s successful launch of an XRP ETF that quickly amassed $250 million in assets. As more issuers enter the market, the emphasis will shift toward differentiating products through yield opportunities, cost efficiency, and institutional partnerships.

Ultimately, the performance of Solana ETFs underscores the maturation of the crypto market, which is evolving from a single-asset focus to a diverse ecosystem offering a range of investment opportunities.