Solana Slides Despite Robust U.S. ETF Inflows
Derek Lin
November 3, 2025
“Flows are healthy, but this tape is still macro-driven—fundamentals take a back seat when risk models flash red,” said Maya Ortiz, head of digital assets at ApexFlow.
The Paradox of Flows
Solana’s flagship token slid almost 20% over the past week even as the first U.S. spot Solana ETFs logged a nine-figure haul. The disconnect unnerved traders banking on the launch to anchor price action. Instead, SOL’s decline accelerated as macro risk sentiment deteriorated following the latest Fed messaging and tariff noise.
Analysts argue the slump underscores that ETF demand can be swamped by hedging flows, especially when market makers race to delta-hedge creations. The same tension played out with bitcoin earlier this year, when spot ETFs absorbed cash even as prices wobbled.
ETF Creations Hold Firm
Bitwise’s Solana ETF dominated first-week activity, accounting for roughly half the net creations reported by issuers, according to desk trackers. Secondary-market selling, however, forced authorized participants to arbitrage shares back into cash, keeping the underlying token under pressure. Observers noted that only a narrow group of liquidity providers are driving the inflows so far.
ETF desks expect more institutional allocators to queue up as compliance teams finish due diligence. Several fund managers told CryptoMist they are benchmarking spreads versus older vehicles like the Grayscale trust, mirroring the process followed when bitcoin products saw renewed demand.
On-Chain and Liquidity Signals
Despite price weakness, on-chain data shows active addresses holding steady near 1.1 million, while DEX volumes dipped only modestly. Market depth across major exchanges thinned, though, amplifying every sell program. Market-makers said they are watching validator performance and DeFi lending rates for signs of stress that could cascade into forced unwinds.
Funding rates on perpetual swaps have normalized, suggesting speculative longs already cleared out. That sets the stage for ETF inflows to matter more if macro headwinds ease, yet for now, liquidity pockets remain fragile.
Macro Drag and Positioning
The broader crypto tape sold off after the Fed signaled it is in no rush to cut rates, while tariff chatter kept traders defensive. Risk models at multi-strategy funds triggered de-grossing across altcoin books, hitting SOL alongside peers. Options dealers flagged heavy gamma exposure around $150 strikes, increasing the odds of outsized intraday swings.
Market participants also point to residual leverage unwinds stemming from last week’s industry-wide liquidation spike. Until volatility settles, ETF inflows may simply offset selling rather than fuel a rally.
What Comes Next
Traders are watching whether additional issuers file for competing Solana products, potentially widening participation. Daily creation data, validator uptime, and cross-chain flows into wrapped SOL products remain critical indicators. A bounce could materialize if macro jitters fade and ETF sponsors continue to warehouse inventory rather than flip shares.
Until then, Solana’s bull case hinges on the idea that persistent institutional demand will eventually overwhelm short-term hedging. For now, desks are bracing for more turbulence as they recalibrate risk models heading into mid-November.