Solana – Why ETF money is still coming despite SOL’s price action
Spot investors and traders aren’t on the same page right now.
Solana [SOL] is sending mixed signals to the market right now. While the price and derivatives look shaky at best, capital might be making its way into Spot SOL ETFs though.
There’s a gap between long-term belief and short-term trader sentiment, which will make a difference if this pace is maintained.
Solana ETF inflows return
Datat from SoSoValue highlighted capital entering ETFs this week, even as the native token SOL recorded a double digit fall over the same timeframe. Total net assets held by spot SOL ETFs climbed to $674 million too, implying that investors may be willing to add exposure at press time levels.
Rather than chasing prevalent short-term price moves, ETF buyers might be a bit more patient in their efforts to create a time of consolidation. While these flows don’t quite confirm a trend reversal, it could happen in time.
Here, while inflow sizes seemed to be modest, the consistency can be deemed notable.
‘Cautious’ derivatives as SOL trades in a range
This buying seemed to be in great contrast with what’s happening across Solana’s derivatives market.
On the price charts, it looks like there’s little to no faith in SOL this week. At press time, SOL was trading at around $87.17, moving sideways after recovering slightly from last week’s drop. The Bollinger Bands revealed the price being compressed between the $84.60 lower band and the $89.14 upper band. There’s a lack of pace.
The RSI was at 51.16, while MACD histograms turned green over the last few days. Meanwhile, Aggregated Open Interest was at around $2.34 billion, down from recent highs.
Traders have been selling rather than adding leverage. The average Funding Rate was -0.0222, meaning short positions continued to dominate, with traders willing to pay to stay bearish.
The market wants to stabilize. However, the want is not absolute, with price and derivatives not supporting the ETF push for greener numbers.
Final Thoughts
- Solana ETFs hold $674M in assets, even with shaky price and derivatives.
- SOL’s next move likely depends on whether ETF inflows stay consistent.
