Key Takeaways
Why did Solana’s price drop after the Bitwise ETF launch?
Despite $69M in inflows, traders took profits, triggering a 5% dip in SOL’s price.
What’s the main risk with the new Solana ETF?
Bitwise plans to stake all SOL in the fund, which could tighten liquidity during large redemptions.
Solana [SOL] didn’t waste time flipping the script.
Hours after the long-awaited Bitwise Solana Staking ETF [BSOL] went live, the token slipped; a classic case of “buy the rumor, sell the news.”
Is this dip simply a pause, or the start of a bigger cooldown?
Inflows strong, but redemption risks emerge
BSOL made a solid entrance yesterday, attracting $69.45 million in first-day inflows and bringing total assets to $289 million; roughly 0.27% of Solana’s market cap.
Source: X
While the launch shows Solana’s strong investor appeal, ETF expert Nate Geraci flagged a structural risk. Bitwise plans to stake 100% of the SOL held in the fund, so liquidity could tighten during large redemptions.
Source: X
According to Bitwise’s filing, if unstaking delays occur, the trust may exchange “Moderately Liquid Solana” (pending cooldown) for “Highly Liquid Solana” via third-party trades.
This is a process that could slightly reduce the fund’s NAV during high-redemption periods.
SOL slips after ETF debut
In the hours after the BSOL went live, SOL price dropped to around $194, down nearly 5% from its pre-launch highs.
Source: TradingView
The one-hour chart showed strong selling pressure at press time, with large red candles and trading volume spikes indicating profit-taking. RSI showed weakening momentum, while OBV proved reduced buying activity.
Despite strong ETF inflows, SOL’s short-term outlook remains uncertain as traders appear to be locking in early gains.
Leverage builds, but caution dominates
Solana’s Open Interest rose to $4.36 billion, so traders are reopening leveraged positions after the ETF launch.
However, the average Funding Rate remained negative at -0.18%, meaning short positions still outweigh longs.
Source: Coinalyze
This means that despite growing market activity, sentiment is cautious, with many traders betting on further downside.
For SOL to move higher, a flip in Funding Rates toward positive territory and continued demand in Open Interest would be key signs of bullish confidence.
