Institutional investors shift focus toward Solana-backed products, signaling rising interest in alternative blockchain assets.
Solana ETFs Attract $44 Million Amid Ongoing Capital Rotation
Spot Solana exchange-traded funds (ETFs) have logged their fourth consecutive day of inflows, reflecting a growing investor appetite for alternative crypto assets amid capital rotation away from Bitcoin and Ether funds.
According to data from SoSoValue, Solana ETFs added $44.48 million on Friday, pushing cumulative inflows to $199.2 million and total assets under management above $502 million. The Bitwise Solana ETF (BSOL) led the trend, posting a 4.99% daily gain as investors sought exposure to Solana’s rapidly expanding ecosystem.
In contrast, spot Bitcoin ETFs saw $191.6 million in net outflows the same day, continuing a three-day pattern of profit-taking. Bitcoin funds recorded $488.43 million in outflows on Thursday and $470.71 million on Wednesday, while Ether ETFs registered $98.2 million in outflows, reducing their cumulative inflows to $14.37 billion.
Analysts Cite ‘Capital Rotation’ Toward New Yield Opportunities
Market experts attribute Solana’s recent momentum to investor rotation from major crypto ETFs into newer, yield-oriented products.
“Solana ETFs are surging on fresh catalysts and capital rotation, as Bitcoin and Ether see profit-taking after strong runs,” said Vincent Liu, Chief Investment Officer at Kronos Research. “The shift signals rising appetite for new narratives and staking-driven yield opportunities.”
Liu added that Solana’s strength could persist into next week as major cryptocurrencies consolidate. “Solana momentum may extend next week, with rotation staying alive while majors pause, unless macro news sparks extreme volatility,” he noted.
New Crypto ETFs Broaden Market Access
The growing popularity of Solana-based ETFs follows the launch of Bitwise’s Solana Staking ETF (BSOL), which debuted earlier this week with $222.8 million in assets. The fund offers investors direct exposure to Solana (SOL) while providing an estimated 7% staking yield, appealing to institutions seeking both growth and passive income.
In addition, several new products are entering the market — including Canary’s Litecoin (LTC) and Hedera (HBAR) ETFs — while Grayscale’s Solana Trust is expected to convert into an ETF in the coming weeks. Hong Kong also made headlines after approving its first spot Solana ETF, signaling broader international adoption.
With consistent inflows and mounting institutional participation, Solana ETFs are emerging as one of the strongest alternative investment narratives in the digital asset market, underscoring shifting investor preferences in the post-Bitcoin ETF era.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.