U.S. spot exchange-traded funds (ETFs) for Solana have recorded their largest single-day withdrawals to date, marking a negative milestone with Solana ETF outflows exceeding 32 million dollars in a single session. This movement, led almost exclusively by 21Shares’ TSOL product, contradicts the general bullish market trend and solid on-chain fundamentals. Vitaliy Shtyrkin, CPO of B2BINPAY, suggests this behavior is due to a “position reset” following weeks of uninterrupted inflows, ruling out a loss of long-term conviction.
A breakdown of SoSoValue data reveals that 21Shares’ TSOL fund suffered a bleed of 41.79 million dollars on Wednesday, a figure only partially offset by modest inflows into other competing products. This event marks the third and largest withdrawal since these instruments launched on October 28. Interestingly, this volatility coincided with the debut of Franklin Templeton’s ETF (SOEZ), which began trading on the same day, adding a new competitive dynamic to the sector. Despite withdrawals in traditional investment vehicles, Artemis data shows the Solana network received over 321 million dollars in actual capital over the past month, mostly coming from Ethereum.
This scenario highlights a fascinating divergence between short-term institutional sentiment and actual activity within the blockchain. While ETF investors appear to be taking profits or rebalancing portfolios in the face of macroeconomic uncertainty and upcoming Federal Reserve decisions, Solana’s DeFi ecosystem continues to attract massive liquidity. On-chain activity, while down from the memecoin peak, shows native investors maintaining a net-long stance, suggesting the underlying infrastructure remains robust despite derivative asset price volatility.
Is this withdrawal an alarm signal or a simple pause before new highs?
The immediate impact on SOL price has been trading around 142.75 dollars, showing notable resilience with a 1.1% rise despite institutional selling pressure. However, prediction markets like Myriad show caution, assigning a high probability that the asset will not break its all-time high before year-end. If this trend of Solana ETF outflows persists, it could limit short-term upside potential, forcing retail investors to sustain price support.
Although the massive selloff on December 1 sparked fears, the subsequent recovery and interest in new leveraged products indicate that risk appetite has not disappeared. Looking ahead, attention will focus on whether the launch of new competitors like the SOEZ fund manages to reverse the negative flow trend. In summary, while ETF data paints a corrective picture, the fundamental health of the network suggests this episode could be transitory within a broader adoption trend.
