ETF Outflows Continue as Capital Rotates to Solana
U.S. spot Bitcoin ETFs experienced another $134 million in net redemptions, while Ethereum products saw a weekly outflow of $238 million, led by a $42.5 million withdrawal from BlackRock's fund. In contrast, Solana-based investment products are attracting fresh inflows, signaling a selective rotation by institutional allocators rather than a complete exit from digital assets.
- The recent Bitcoin ETF outflows represent the most significant capital withdrawal from BTC and ETH investment products since the 2022 market capitulation. On February 18, U.S. spot Bitcoin ETFs saw a net outflow of $133 million, with BlackRock's IBIT fund accounting for the largest portion at $84.2 million. - This marks a four-week streak of redemptions for global crypto investment products, which have now reached a total of $3.74 billion in outflows. A distinct regional split has emerged, with U.S.-listed products leading the outflows while vehicles in Germany, Canada, and Switzerland have posted net inflows. - Solana-focused funds have bucked the trend, attracting $31 million in net inflows over the last week, the second consecutive week of positive flows. On-chain data reflects this rotation, with over $42 million bridged to Solana from other blockchains in the past week, including $20 million from Ethereum. - The Bitwise Solana Staking ETF (BSOL) has been a primary beneficiary of these inflows, attracting $1.51 million on February 18 alone and bringing its total historical net inflow to $686 million. Cumulative net inflows for all Solana spot ETFs have now reached $880 million. - The rotation into Solana comes as institutional players show increasing interest in the ecosystem beyond ETFs. Goldman Sachs recently disclosed holdings of approximately $108 million in SOL. - Tokenized real-world assets (RWAs) on the Solana network have also hit new highs, with Total Value Locked (TVL) surpassing $1.6 billion across roughly 285,000 unique holders.
