Bitwise CEO remains optimistic amid market downturn
Bitwise’s Solana Staking ETF (BSOL) has been experiencing something interesting since its October 28 launch. While the SOL token price has been dropping almost daily, the ETF itself has seen consistent inflows every single day. It’s a bit counterintuitive, I think, but Bitwise CEO Hunter Horsley sees this as a positive development.
Horsley suggests that lower prices actually attract more investors because they can enter at better levels. The current SOL price stands around $135.60, down about 3.5% according to CoinGecko data. But despite this downward trend, BSOL has managed to pull in hundreds of millions in total inflows within its first few weeks.
Institutional money flows tell a different story
The numbers are pretty telling when you compare BSOL with other products. BSOL has attracted $365.1 million in total inflows so far, while Grayscale’s SOL ETF (GSOL) has only brought in $25.3 million. That’s quite a difference, and it becomes even more significant when you consider what’s happening with Bitcoin and Ethereum ETFs.
While BSOL continues to see daily inflows, Bitcoin and Ethereum ETFs have been experiencing significant outflows for about a week. As of November 17, BSOL had $8.26 million in inflows, while Bitcoin ETFs saw $254.51 million in outflows and Ethereum ETFs lost $182.80 million. This pattern suggests something might be shifting in institutional preferences.
New players enter the Solana ETF space
The competition is heating up too. Fidelity just launched its own Solana ETF (FSOL) on November 18 with a 0.25% fee, which is slightly higher than BSOL’s 0.2%. This marks Fidelity’s entry as the largest traditional asset manager in the Solana ETF space, especially with BlackRock still sitting this one out.
VanEck also joined the party with VSOL, launched on November 17. They’re offering an interesting deal – waiving all sponsor fees on the first $1 billion in assets until February 2026. Their staking partner is also waiving fees during this period. The fund already stakes nearly all of its SOL, offering around 6.6% gross staking yield from day one.
Why the shift toward Solana ETFs?
It seems investors are drawn to Solana ETFs despite the price decline because these products offer a safer, more structured way to gain exposure. They provide staking yield, professionally managed custody, easier compliance, and a way for institutions to scale positions without dealing directly with exchanges.
The staking yields are particularly attractive – BSOL offers around 7% annually, while VSOL provides approximately 6.6%. These yields might be part of what’s keeping institutional money flowing in even as retail sentiment appears shaky.
From what I can gather, this might be the beginning of a larger trend. Institutional investors seem to be positioning for the long term with Solana, using ETFs as their preferred entry point. The daily inflows into BSOL despite price declines suggest confidence in Solana’s future prospects rather than panic selling.
It’s worth noting that NYSE Arca has also approved listing for the Canary Marinade Solana ETF, adding yet another option to the growing Solana ETF ecosystem. The space is getting crowded quickly, but the consistent inflows into these products indicate there’s genuine institutional interest building around Solana.
