Solana Holds $130 Support as Spot ETFs Continue Strong Inflows

• Spot SOL ETFs have attracted net investments of $476 million despite Solana’s price reduction of nearly 30%.
• Bitwise’s BSOL ETF leads demand, capturing $424 million, or 89% of overall net flows into SOL ETFs.
• 21Shares’ TSOL launches with an AUM of $100 million, intensifying competition in Solana ETF market.

Solana’s spot exchange-traded funds (ETFs) are continuing to attract significant investment, even as the crypto faces a sharp price decline. Since their launch, these instruments have attracted net investments of $476 million, registering interest for 17 consecutive days. The price of SOL has declined by 30% to date, moving from $186 to $130.

21Shares Solana ETF Launches With $100 Million

Bitwise’s BSOL ETF has dominated the inflows, accounting for 89% of total net flows with $424 million. Additionally, BSOL ETF posted net flows of $35 million on November 19, which marked its third-largest single day and the largest single day since November 3.

21Shares has officially launched its spot Solana ETF, TSOL, marking a notable entry in the growing Solana ETF market. The fund opens with $100 million in assets under management (AUM) and charges a modest fee of 21 basis points. According to ETF analyst Eric Balchunas, has pointed out that overall, spot SOL ETF offerings so far have managed to raise $2 billion.

Analysts​‍​‌‍​‍‌ mention that the launch of TSOL intensifies the competition of Solana ETFs, providing investors another tradable product to get exposure to the crypto asset. ​‍​‌‍​‍‌

Currently, SOL is trading at $132.42, with a 24-hour trading volume of $18.15 billion, market capitalization of $73.52 billion, and market share of 2.5%. The price of SOL has declined by 7.36% over the last 24 hours, indicating a downward trend. 

Also Read | Solana Price: Can the Rebound from $130 Trigger a Move Toward $250?

Solana Holds Key Support Around $130

Crypto analyst Crypto TXG points out that SOL is testing an important support at $130, with potential support at $180 if support is maintained at this level, although support at $125 may follow before a significant rally. The response of SOL at this level will be crucial for its next significant movement. 

Spot SOL ETFs continue to show solid investor interest in SOL, in spite of considerable price pressure in the shorter-term market, thereby symbolizing rising investor interest in organized cryptocurrency investment products.

Also Read | Libra Insiders Shift $4M During Market Slump, Invest in Solana