Bitwise Solana ETF Sees First Outflow Amid Market Stress

The Bitwise Solana Staking ETF has recorded its first outflow since launch, reflecting rising stress across crypto markets. The move comes as risk appetite weakens and institutions reassess exposure. 

Broader sentiment has shifted toward caution amid macro uncertainty and thin liquidity. Consequently, even products that showed steady demand now face pressure. The development highlights how quickly positioning can change during periods of extreme fear.

BSOL Breaks Its Inflow Run

Data from Farside Investors shows BSOL posted a $4.6 million outflow on December 16. The fund also recorded its lowest daily trading volume since launch. As a result, the ETF sold roughly 36,860 SOL during the session. This shift marked a clear change after weeks of consistent inflows. 

Significantly, BSOL offers direct Solana exposure alongside staking rewards, which had supported demand. However, market stress has started to outweigh yield considerations.

Institutional flows suggest positioning adjustments rather than a broad exit from Solana products. Besides the BSOL outflow, other Solana-linked funds showed mixed activity. 

Fidelity’s Solana ETF attracted $38.7 million, marking its strongest daily inflow so far. Additionally, total net inflows across spot Solana ETFs still reached $35.2 million. Hence, capital rotation appears selective rather than uniform.

Macro Concerns and Seasonal Effects

Analysts link the BSOL outflow to macro risks and calendar effects. Expectations around a possible Bank of Japan rate hike have increased volatility across global markets. 

Consequently, institutions have trimmed exposure ahead of key policy signals. Moreover, the approaching holiday period often reduces trading volumes. Lower liquidity can amplify price moves and raise risk management concerns. Hence, some funds have opted for defensive adjustments.

Solana Price Holds Key Support Levels

Solana traded near $128 after recent declines, extending weekly losses. Analyst Matthew Dixon highlighted the $120 to $125 zone as a major support area. He noted this range aligns with prior consolidation and a psychological threshold. RSI readings near 38 suggest selling pressure has slowed. Historically, Solana bottoms often form closer to 30 to 35 RSI.

If support holds and Bitcoin remains stable, Dixon expects a relief bounce toward $145 to $155. Additionally, stronger momentum could push prices toward $170 to $180, which marks a prior breakdown zone. 

However, he stressed this would still represent a lower high. Conversely, a daily close below $120 could open a move toward $105 to $110. In extreme conditions, prices could test $95 to $100, which he views as long-term accumulation territory.