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$37.33 million in funds poured into the Solana spot ETF. This number made the entire crypto circle boil! While the market is still debating when the bear market will end, institutional funds have already cast a vote of confidence with real money. But is this a flash in the pan, or the prelude to a new bull market?   The secret behind the influx of money  The latest data shows that the total net inflow of Solana spot ETF for three consecutive days reached US$37.33 million, of which Bitwise Solana Staking ETF attracted a huge amount of US$46.54 million in a single day. This level of inflows is extremely rare in a bear market, and institutional investors appear to be placing big bets on Solana's future. Grayscale Solana Trust ETF has just completed its conversion to a spot ETF and achieved a trading volume of US$4.86 million on its first day of listing. The total net asset value of Bitwise’s Solana ETF has exceeded the US$330 million mark. These numbers tell us that professional investors’ confidence in the Solana ecosystem is rapidly recovering. Solana’s financial performance crushes Ethereum With annual revenue of US$1.25 billion, this is an astonishing answer from Solana. This number is 2.5 times the revenue of Ethereum during the same period, showing an overwhelming advantage in the public chain revenue competition. Only BNB Smart Chain and Bitcoin have barely exceeded the $100 million threshold, while Solana has left its competitors far behind. In terms of price, Solana soared to $236 in early October, approaching a record high. Although there was a subsequent correction, the 17% monthly increase still allowed investors to see strong upward momentum. Analysts generally believe that $250 may just be the next stage target.  Why are organizations suddenly falling in love with Solana? JP Morgan predicts that the Solana spot ETF will attract US$1.5 billion in capital inflows in the first year. Although this number is only one-seventh of the Ethereum ETF's expectations, it is already considerable for an emerging public chain. The continued inflow of institutional funds is changing the market structure of Solana, making it gradually get rid of the volatile characteristics dominated by retail investors. REX-Osprey's Solana ETF saw a single-day peak inflow of $27 million in September, and despite a brief lull in early October, strong inflows soon resumed. This resilience suggests that professional investors are viewing Solana as a long-term allocation rather than a short-term speculative vehicle. Bull signal or false prosperity? Historical experience tells us that ETF capital inflows are often a precursor to market turning points. Grayscale Bitcoin and Ethereum Trust both experienced the process of NAV premium convergence before converting to spot ETFs. Today, the premium of Grayscale Solana Trust has dropped from 750% to nearly zero. This pattern is exactly the same as that of Bitcoin and Ethereum. But the risks are also there. The capital size of Solana spot ETF is still much smaller than that of Bitcoin and Ethereum products, and the market depth and liquidity still need to be tested. JPMorgan's conservative forecast also reminds us that Solana still has a long way to go.  Enter now or wait? For ordinary investors, the inflow of institutional funds of $37.33 million is undoubtedly a strong signal. But the market is always full of uncertainty, and whether Solana can continue this momentum remains to be seen. Smart investors will pay close attention to the following key indicators: The persistence of ETF inflows Solana Network Revenue Growth Developer ecological activity Position changes on mainstream exchanges Bull markets are always born in doubt and end in carnival. While most people are still hesitating, institutions have quietly made plans. Solana’s changes this time may be an important signal for the market’s turn. But remember, investing always requires independent thinking, and other people's FOMO should not be the reason for your decision-making.   |
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