Solana News Update: Even with a 38% Decline in Price, Solana ETFs Attract $613M as Institutions Focus on Core Fundamentals
Institutional Investment in Solana Surges Despite Price Dip
Solana (SOL) is attracting significant attention from institutional investors, even as its price has fallen 38% since the start of the year. A notable example is a $7 million investment from a large holder, while exchange-traded funds (ETFs) focused on Solana have amassed an impressive $613 million in inflows. This growing interest highlights the blockchain’s appeal amid market turbulence.
Major Treasury Moves and Staking Initiatives
VisionSys AI, a publicly listed company, recently unveiled a $2 billion treasury plan centered on Solana. This move aligns with a broader trend of corporations allocating funds to the rapidly expanding blockchain. The strategy, developed in collaboration with Marinade—a top staking provider with $2.2 billion in assets locked—targets the acquisition of $500 million in SOL over the next six months. By capitalizing on Solana’s attractive staking returns, the initiative aims to generate substantial yields.
ETF Inflows Outpace Market Leaders
Solana ETFs have become a major force, recording 21 straight days of net inflows as of late November. These inflows have outperformed those of both Bitcoin and Ethereum ETFs. Even as SOL’s price dropped from $195 to $137—a 29% decrease—investor demand remained robust, with total inflows reaching $621 million. Bitwise’s BSOL ETF alone was responsible for 89% of these inflows, underscoring its dominance in this emerging sector. This trend suggests that institutional investors are focusing on Solana’s strong fundamentals—such as high transaction throughput, active developer participation, and competitive staking rewards—rather than short-term price swings.
Market Challenges and Technical Outlook
Despite the influx of institutional capital, Solana’s price weakness has raised concerns among traders. The token’s technical setup remains fragile, with difficulties in reclaiming crucial support levels. Open interest in Solana futures has dropped from $10 billion in mid-November to $7.2 billion, indicating a decline in speculative trading. Analysts caution that unless SOL can sustain a rally above $140, it may revisit the $120 mark, which previously served as a support floor. In contrast, Bitcoin and Ethereum ETFs have experienced outflows, with Bitcoin ETFs seeing $151 million withdrawn on November 24 and Ethereum ETFs losing $262 million over eight days.
Strategic Marketing and Revenue Growth
The Solana Foundation’s “Hello Wall St.” campaign, launched in October, has further fueled institutional interest by spotlighting the blockchain’s practical uses in payments and asset tokenization. This marketing effort coincided with the rollout of Solana ETFs, positioning the network as a high-performance, cost-effective alternative to Bitcoin. Despite recent price declines, Solana’s annual revenue from network activity and trading has reached $2.85 billion, surpassing Ethereum’s slowing growth, which has dropped 45% from its August peak.
Outlook: Stability and Continued Growth
Looking ahead, continued ETF inflows could help stabilize Solana’s price over the medium term. The network’s staking yield remains above 6%, making it attractive to investors seeking returns in a challenging crypto market. Solana also maintains a leading position among layer-1 blockchains in terms of user activity and transaction volume, according to Dune Analytics. While short-term volatility persists, the increasing adoption of Solana ETFs and treasury strategies signals growing confidence in the blockchain’s scalability and real-world utility.
