Solana Drops Over 20% Post-ETF Launch Despite Strong Investor Inflows
The launch of U.S. spot , driven by products such as Bitwise’s BSOL and the Grayscale Solana Trust (GSOL), has excited many institutional investors. Bitwise’s BSOL ETF alone raised $199 million in new capital. It begined with about $223 million in viewd money. Cumulatively, net inflows into Solana-based products reached $421 million, marking the second-strongest week on record for Solana-linked ETFs.
According to industry studies, the ETF’s first day was a “clear success,” outperforming other products that tracked BTC and , which experienced significant outflows during the identical period.
Price Correction Goes Against Institutional Momentum
Solana’s price dropped sharply, losing more than 20% of its value in a week, going from a high of $205 to a low of roughly $165. This was despite considerable interest from investors.
This retreat did much worse than leading assets like and ETH during the current market sluggishdown. Most people think that Solana’s drop was caused by several things:
- Uncertainty in the broader market is making traders and institutions want to take less risk.
- A likely “trade-the-news” dynamic, as investors sold their shares later than the ETF debut. This often occurs in crypto markets when significant news breaks.
- Technical tradeing intensified as trading volume and whale activity increased, which pushed prices even lower than key support levels.
Analysis of The Market and Technology
The technical background hasn’t assisted . The price couldn’t stay over the $180 line, which meant that it lost gains from the previous year and had its worst performance of 2025 so far.
Volume surges and the strategic activities of large players in the market, such as Jump Crypto’s alleged on-chain transfers, made people feel more negative. Analysts are keeping an eye on support in the $150–$156 range and resistance at $197, which is also SOL’s monthly pivot point for November.
Institutional Demand vs. Short-Term Outlook
The amount of money flowing into Solana’s institutions indicates that people are becoming increasingly confident in its long-term future, primarily due to the unique features of its ETFs, such as .
Analysts, on the other hand, say that the short-term price decline could persist unless the entire crypto market rebounds and risk sentiment improves.
The recent introduction of an ETF has established a standard for future fund approvals and upgrades. The Alpenglow network upgrade is being discussed as a potential reason for renewed hope. The short-term view remains cautious, nonetheless, because price movements are directly linked to macroeconomic instability across all.
Solana’s significant drop indicates that substantial institutional inflows can co-occur with short-term downside pressure in highly volatile markets. The ETF-fueled optimism is unlikely to lead to a swift price recovery until the overall market settles down.
