In brief
- 21Shares’ TSOL product was the sole source of a record $32.19M outflow from Solana ETFs on Wednesday.
- An analyst calls the outflow a likely “position reset” following weeks of inflows and a November drawdown.
- Despite ETF redemptions, over $321M has flowed onto the Solana network in the past month, mostly from Ethereum.
U.S. spot Solana exchange-traded funds recorded their largest single-day outflow on Wednesday, diverging from a broader crypto market rally led by Bitcoin.
The $32.19 million redemption marks the third—and largest—outflow since the funds launched on October 28, according to SoSoValue data. A fund breakdown shows the entirety of Wednesday’s outflow came from 21Shares’ TSOL product, which saw $41.79 million exit, partially offset by modest inflows into other Solana ETFs.
Notably, TSOL has been the primary source of outflows, contributing to all three Solana ETF redemption events to date. The previous outflows were $13.55 million on December 1 and $8.10 million on November 26.
“This is likely a position reset after three weeks of uninterrupted inflows and a sharp November drawdown,” Vitaliy Shtyrkin, CPO at an all-in-one crypto ecosystem for business B2BINPAY, told Decrypt.
The outflow coincided with the launch of a competing product, as Franklin Templeton’s Solana ETF (SOEZ) began trading on the same day.
Despite the ETF weakness, Solana’s on-chain fundamentals tell a different story. Over $321 million has flowed onto the layer-1 network in the past month, with Ethereum the major contributor, supplying over $240 million of that total, according to Artemis data.
“Since the memecoin peak, on-chain activity has decreased, active addresses fell to multi-month lows, and positioning on derivatives is net-long yet less aggressive than in October,” Shtyrkin added. This development occurs amid a reduction in exchange supply and stable staking yields.
However, the analyst added, “This doesn’t signal exit, more of a longer-term conviction.”
Solana is currently trading at $142.75, up 1.1% on the day, according to CoinGecko data.
Users of prediction market Myriad, owned by Decrypt’s parent company Dastan, are cautious about Solana’s short-term prospects, placing a 95% chance on it failing to break its all-time high before the end of the year.
Though Bitcoin’s December 1 selloff and subsequent recovery has relieved near-term pressure, the outlook remains tense due to the Federal Reserve’s interest rate decision on December 10 and economic data releases this month.
Meanwhile, several altcoins have demonstrated strong bounce-back capacity. Coins like Fartcoin, ZCash, Sui, and PumpFun have posted double-digit rallies over the past week, according to CoinGecko data.
Still, the sentiment remains in the fear territory due to the liquidation spikes noted since October 10. It will depend on how the macro overhang resolves, particularly in the Fed’s forward guidance for 2026.
Myriad predictors have assigned an 80% chance that Bitcoin will hit $100,000 first before $80,000.
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