Solana ETF attracts 1.5 billion in funding, Bloomberg analyst: Market cap adjusted beats Bitcoin by double

Bloomberg ETF Analyst Eric Balchunas said on Thursday that despite Solana (SOL) tokens dropping 57% since related ETFs launched in the U.S. in July 2025, these funds have still accumulated $1.5 billion in inflows with no significant redemption wave. Balchunas added that 50% of the funds flowing into Solana ETFs come from institutional investors.

Solana ETF Capital Inflows: Quantifying Institutional Resilience

(Source: Bloomberg Intelligence)

Balchunas’s analysis on X platform pointed out that the performance of Solana ETFs is an industry anomaly. He cited industry practice: ETFs launched during a downturn rarely sustain inflows. “If they lose 57% in the first six months, most don’t last a year or two. Solana’s case defies physical laws.”

Here are recent key fund flow data for Solana ETFs:

• Wednesday (March 5): $19 million net inflow
• Thursday (March 6): $6 million net outflow, first in over a month
• Since launch: $1.5 billion net inflow, with 50% from institutional investors

Balchunas’s core point is that the 50% institutional share not only indicates the amount of capital but also signifies a long-term investor base with willingness to hold, forming a potential foundation for future growth.

Market Cap-Adjusted Comparison: Solana ETF’s Relative Performance May Surpass Bitcoin ETF

Balchunas provided a precise comparison framework: since Solana’s market cap is about $50 billion, far below Bitcoin’s approximately $1.4 trillion, directly comparing ETF inflows between the two involves scale bias.

Adjusting Solana ETF inflows proportionally to Bitcoin’s market cap, the equivalent net inflow is about $54 billion, roughly twice the net new capital inflow of Bitcoin during the same period.

He emphasized the background differences: Bitcoin ETFs launched when BTC prices were rising, providing a tailwind; whereas Solana ETFs face a declining token market, making the adjusted relative performance more notable in industry comparisons.

SOL Spot Market: Valuation Background Amid 70% Drop

The spot performance of SOL tokens contrasts sharply with institutional ETF inflows. Driven by memecoin frenzy in January 2025, SOL hit a record high of $293 per token. Since then, market sentiment has turned sharply negative. According to CoinGecko data, SOL is now trading around $88, down 70% from its peak, with a 2.7% drop on the day and an 11% decline over the past month.

Since ETF launch, a 57% decline means all early investors are currently at paper losses. However, continued institutional holdings suggest they have not engaged in large-scale redemptions but maintained a long-term stance.

FAQs

Q: Why can Solana ETFs maintain inflows despite a 57% token decline?
According to Eric Balchunas, the key factor is the 50% institutional investor share. Institutions tend to adopt a long-term view and do not redeem immediately due to short-term price swings, creating a relatively stable capital base that allows Solana ETFs to sustain $1.5 billion in net inflows despite adverse conditions.

Q: What does Balchunas mean by Solana ETF “violating physical laws”?
He refers to industry norms: ETFs launched during a declining market for the underlying assets rarely sustain positive inflows; most such funds don’t last beyond one or two years. The fact that Solana ETF still has $1.5 billion in inflows after a 57% token drop is seen as defying this industry rule.

Q: How does the performance of Solana ETF compare to Bitcoin ETF after market cap adjustment?
Adjusting Solana ETF inflows proportionally to market cap (Solana $50 billion vs Bitcoin $1.4 trillion), the equivalent inflow is about $54 billion, roughly twice the Bitcoin ETF’s net inflow during the same period. It’s important to note that Bitcoin ETF launched when BTC was in an uptrend, whereas Solana faces a declining token market, with fundamentally different background conditions.