Solana ETFs witnessed inflows for 4 consecutive days amid a "capital rotation".

Solana spot ETF funds continue to attract strong interest from investors, recording the fourth consecutive day of capital inflows amid the backdrop of a “capital rotation” from Bitcoin and Ether funds.

According to data from SoSoValue, last Friday, Solana spot ETFs attracted an additional $44.48 million, bringing the total cumulative inflow to $199.2 million and total assets under management exceeding $502 million. Notably, the Bitwise Solana ETF (BSOL) is leading this trend, contributing the majority of the new capital with a daily growth rate of 4.99%.

Solana ETF funds experienced an influx of funds | Source: SoSoValueIn contrast to Solana, Bitcoin spot ETFs saw a strong outflow trend with a net value of up to 191.6 million USD in just one day, continuing a week-long profit-taking streak. Specifically, these funds lost 488.43 million USD on Thursday and 470.71 million USD the day before.

Similarly, Ether spot ETF funds also recorded outflows of 98.2 million USD, causing the total accumulated outflows to decrease to 14.37 billion USD. During the week, these funds saw withdrawals of 184.3 million USD on Thursday and 81.4 million USD on Wednesday.

Solana ETF affirms its position

The strong shift towards Solana ETF funds occurs against the backdrop of the market witnessing a phenomenon of “capital rotation.” Mr. Vincent Liu, the Chief Investment Officer at Kronos Research, noted that this trend reflects the increasing demand for new narratives and profit opportunities from staking.

“Solana ETF funds are breaking out due to new momentum and capital rotation, while Bitcoin and Ether are being locked in profits after strong growth phases,” Mr. Liu shared. “This shift indicates that investors are increasingly interested in new trends and yield opportunities from staking.”

Many analysts predict that the upward momentum of Solana could continue into next week, as Bitcoin and Ether are entering an accumulation phase. “The growth momentum of Solana may be sustained next week, as the rotation of capital continues and the major coins temporarily stabilize, unless there are macro news that cause strong fluctuations,” Mr. Liu added.

The wave of new cryptocurrency ETF funds entering the market

This week, the market welcomed many new cryptocurrency ETF funds, notably the Bitwise Solana staking ETF which launched on Tuesday with total assets reaching $222.8 million, providing investors the opportunity to access Solana with an estimated staking yield of around 7%.

In addition, many new funds are preparing to join the market, including the Litecoin ETF and Canary's Hedera fund, along with the anticipated conversion of Grayscale's Solana Trust Fund into an ETF. Notably, Hong Kong just approved the first spot Solana ETF last week, providing more attractive investment options for regional investors.

Mr. Teacher