Solana News Update: Institutional Interest Drives Solana ETFs Higher, While Token Value Declines

Solana ETF Developments Add Complexity to Crypto Market

CoinShares has decided to pull its application for a staked Solana (SOL) ETF from consideration by the U.S. Securities and Exchange Commission (SEC), introducing new uncertainty into the crypto ETF sector. The company attributed its withdrawal to an inability to finalize the fund’s structure and asset acquisition, clarifying that no shares had been distributed under the registration. This decision comes on the heels of rival staked SOL ETFs from REX-Osprey and Bitwise, with Bitwise’s product attracting $223 million in assets on its debut trading day. Despite these launches, SOL’s value has struggled to recover from its September peak above $250, remaining under $150 amid ongoing market turbulence.

Resilience in the Solana ETF Market

Despite price headwinds, Solana ETFs have demonstrated notable resilience. Bitwise’s BSOL ETF, for example, has recorded 21 consecutive days of inflows, accumulating $613 million in net investments as of November 26. The entry of Franklin Templeton into the space, offering an ETF with a 0.19% management fee, further highlights growing institutional interest. Collectively, Solana ETFs now manage close to $918 million in assets. However, this positive momentum in ETF inflows stands in contrast to SOL’s own price, which was trading at $142.93 in late November. Analysts have tempered earlier bullish forecasts, revising down previous $400 targets and warning that SOL may face challenges in reclaiming the $150 mark.

ETF Inflows Diverge from SOL Price Performance

The disconnect between robust ETF inflows and SOL’s subdued price reflects broader trends in the crypto market. While Solana ETFs have managed to attract capital even as Bitcoin and Ethereum funds experience outflows, SOL’s price remains under pressure. Analysts attribute this gap in part to technical issues, such as network outages and reliability concerns. Meanwhile, XRP ETFs have recently surpassed Solana in terms of inflows, with $164 million added on November 25 alone, buoyed by regulatory clarity and new offerings like Franklin Templeton’s XRPZ. These contrasting trends suggest that investors are gravitating toward assets with clearer narratives and perceived lower risk.

Technical Outlook for SOL

From a technical perspective, SOL has found support near the $130 level, with traders closely watching resistance at $135 and $140. A bearish “death cross” pattern has emerged, as the 50-day moving average has fallen below the 200-day moving average, indicating the potential for further declines. Nevertheless, signs of institutional accumulation—such as Bitwise withdrawing 192,865 SOL from Coinbase—point to ongoing long-term confidence. Broader economic factors are also at play, with the Federal Reserve’s probability of a rate cut rising to 70%, which could influence risk appetite across markets.

Future Prospects and Challenges

The outlook for Solana ETFs will depend on their ability to support price growth and sustain investor trust. The arrival of Franklin Templeton and the expected launch of additional funds may enhance liquidity, but obstacles persist. Notably, the 21Shares TSOL ETF recently experienced five consecutive days of outflows, losing $34 million and highlighting the fragility of current momentum. Analysts remain split: some anticipate a recovery to $160 by the first quarter of 2026, while others warn that macroeconomic headwinds, such as a potential pause by the Federal Reserve, could limit gains to $150. Ultimately, Solana’s future will hinge on its capacity to balance institutional adoption with network reliability, determining whether the $130 support level can be maintained or if further declines are ahead.