Solana slips 5% after $69 mln ETF debut: Profit-taking hits SOL hard!
Staking-heavy ETF structure raises liquidity questions despite investor appetite.
Key Takeaways
Why did Solana’s price drop after the Bitwise ETF launch?
Despite $69M in inflows, traders took profits, triggering a 5% dip in SOL’s price.
What’s the main risk with the new Solana ETF?
Bitwise plans to stake all SOL in the fund, which could tighten liquidity during large redemptions.
Solana [SOL] didn’t waste time flipping the script.
Hours after the long-awaited Bitwise Solana Staking ETF [BSOL] went live, the token slipped; a classic case of “buy the rumor, sell the news.”
Is this dip simply a pause, or the start of a bigger cooldown?
Inflows strong, but redemption risks emerge
BSOL made a solid entrance yesterday, attracting $69.45 million in first-day inflows and bringing total assets to $289 million; roughly 0.27% of Solana’s market cap.
While the launch shows Solana’s strong investor appeal, ETF expert Nate Geraci flagged a structural risk. Bitwise plans to stake 100% of the SOL held in the fund, so liquidity could tighten during large redemptions.
According to Bitwise’s filing, if unstaking delays occur, the trust may exchange “Moderately Liquid Solana” (pending cooldown) for “Highly Liquid Solana” via third-party trades.
This is a process that could slightly reduce the fund’s NAV during high-redemption periods.
SOL slips after ETF debut
In the hours after the BSOL went live, SOL price dropped to around $194, down nearly 5% from its pre-launch highs.
The one-hour chart showed strong selling pressure at press time, with large red candles and trading volume spikes indicating profit-taking. RSI showed weakening momentum, while OBV proved reduced buying activity.
Despite strong ETF inflows, SOL’s short-term outlook remains uncertain as traders appear to be locking in early gains.
Leverage builds, but caution dominates
Solana’s Open Interest rose to $4.36 billion, so traders are reopening leveraged positions after the ETF launch.
However, the average Funding Rate remained negative at -0.18%, meaning short positions still outweigh longs.
This means that despite growing market activity, sentiment is cautious, with many traders betting on further downside.
For SOL to move higher, a flip in Funding Rates toward positive territory and continued demand in Open Interest would be key signs of bullish confidence.
