Solana ETF Sees Record $32M Outflow Amid Broader Crypto Rally

According to data from SoSoValue, the $32.19 million outflow on Wednesday marks the third—and by far the largest—redemption event since U.S. spot Solana ETFs launched on October 28. A detailed fund breakdown reveals the entirety of this movement stemmed from 21Shares’ TSOL product, which saw $41.79 million exit. This was partially offset by modest inflows into other Solana ETFs, but the scale of the TSOL redemption set a stark record. Notably, TSOL has been the sole source of outflows for the nascent ETF category, having also driven the two previous redemption events of $13.55 million on December 1 and $8.10 million on November 26.

The timing of this significant outflow coincided with the launch of a new competitor, as Franklin Templeton’s Solana ETF (SOEZ) began trading on the same day. Vitaliy Shtyrkin, CPO at the B2B crypto ecosystem B2BINPAY, provided context for the move, telling Decrypt, “This is likely a position reset after three weeks of uninterrupted inflows and a sharp November drawdown.” This suggests the outflow may represent portfolio rebalancing or profit-taking by large holders within the 21Shares fund, rather than a fundamental loss of conviction in the Solana asset itself.

While ETF flows turned negative, data from Artemis reveals a contrasting narrative for Solana’s on-chain fundamentals. Over the past month, more than $321 million has flowed onto the Solana network, with Ethereum being the major contributor, supplying over $240 million of that total. This significant capital migration indicates sustained developer and user interest in the ecosystem, potentially seeking opportunities beyond Ethereum.

However, Shtyrkin notes a cooling in certain on-chain metrics. “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,” he explained. This development occurs alongside a reduction in exchange supply and stable staking yields. The analyst interprets this not as a sign of exit, but “more of a longer-term conviction,” suggesting a shift from speculative trading to a more settled, holding posture among a segment of the network’s participants.

The Solana ETF outflow occurred against a backdrop of a broader crypto market rally led by Bitcoin, highlighting a divergence in short-term asset performance. The overall sentiment, however, remains tense due to macroeconomic overhangs. All eyes are on the Federal Reserve’s upcoming interest rate decision on December 10 and key economic data releases, which could influence risk assets across the board.

This caution is reflected in prediction markets. Users of Myriad, owned by Decrypt’s parent company Dastan, have assigned a 95% probability that Solana will fail to break its all-time high before the end of the year. For Bitcoin, Myriad predictors see an 80% chance that it will hit $100,000 before falling to $80,000. Meanwhile, several altcoins like Fartcoin, ZCash, Sui, and PumpFun have posted double-digit rallies recently, demonstrating bounce-back capacity even as the market grapples with liquidation spikes noted since October 10. The ultimate trajectory, as Shtyrkin indicated, may depend on “how the macro overhang resolves, particularly in the Fed’s forward guidance.”