U.S. Solana ETFs recorded their largest single-day outflow of $32.9 million on Wednesday, driven entirely by redemptions from 21Shares' TSOL product. The withdrawal marks the third and largest outflow since the funds launched.
21Shares' TSOL experienced $41.8 million in outflows on Dec. 4, partially offset by modest inflows into competing Solana ETF products. Bitwise's BSOL added $5.6 million, Fidelity's FSOL gained $1.7 million, and Grayscale's GSOL posted $1.6 million in new capital.
The outflow coincided with Franklin Templeton's Solana ETF (SOEZ) beginning trading on Dec. 3, adding a seventh product to the U.S. Solana ETF marketplace. SOL traded around $142 on Wednesday, up 1.1% on the day.
What Happened
TSOL has driven all three Solana ETF outflow events since the products launched in late October. The fund previously experienced $32.54 million in redemptions on Dec. 1 and $34 million on Nov. 26, according to data from SoSoValue.
The 21Shares product has accumulated $60.14 million in cumulative net outflows since launch despite the sector's overall positive flows. TSOL currently holds approximately $86 million in net assets.
Other Solana ETFs maintained steady inflows during Wednesday's session. Bitwise's BSOL continues dominating with $527.79 million in cumulative inflows since launch, representing over 80% of total sector flows.
Vitaliy Shtyrkin, chief product officer at B2BINPAY, characterized the outflow as "likely a position reset after three weeks of uninterrupted inflows and a sharp November drawdown." The comment suggests institutional investors may be rebalancing positions following recent market volatility.
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Solana ETFs collectively hold approximately 6.83 million SOL tokens valued at roughly $964 million, with total assets under management exceeding $790 million across all products. The sector recorded net inflows exceeding $600 million during its first three weeks of trading.
Why It Matters
The outflow breaks Solana ETFs' strong momentum following their late October launch, though the sector remains far ahead of initial expectations. Competing XRP ETFs attracted $90 million in net inflows on Dec. 2, highlighting divergent institutional preferences among altcoin products.
The timing alongside Franklin Templeton's SOEZ launch may indicate investor repositioning toward products with established issuers offering competitive fee structures. Franklin Templeton manages $1.69 trillion in assets and brings significant institutional credibility to the Solana ETF sector.
Shtyrkin noted that "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." Exchange supply has declined while staking yields remain stable, suggesting long-term holder conviction despite near-term selling pressure.
The analyst emphasized the outflows "don't signal exit, more of a longer-term conviction" from institutional investors. Solana processes approximately 70 million daily transactions at fees below $0.01, maintaining strong network fundamentals despite ETF volatility.
Bitcoin's Dec. 1 selloff and subsequent recovery has relieved near-term pressure across cryptocurrency markets, though uncertainty remains ahead of the Federal Reserve's interest rate decision on Dec. 18. Market participants watch for forward guidance on 2026 monetary policy.
Prediction market users on Myriad place a 95% probability on Solana failing to break its all-time high before year-end, reflecting cautious short-term sentiment. Bitcoin faces an 80% probability of reaching $100,000 before $80,000, according to the same platform.
Several altcoins including Fartcoin, ZCash, Sui and PumpFun posted double-digit rallies over the past week, demonstrating selective strength across the broader cryptocurrency market despite continued extreme fear readings on sentiment indicators.
SOL traded at $142.75 at press time, up 1.1% over 24 hours.
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