Capital Rotation Drives Solana ETF Gains While Bitcoin and Ethereum Funds See Withdrawals
Spot Solana exchange-traded funds recorded their fourth consecutive day of inflows on Friday. According to Cointelegraph, the funds added $44.48 million on November 1, 2025. Total cumulative inflows reached $199.2 million, with total assets exceeding $502 million.
The Bitwise Solana ETF led the gains with a 4.99% daily increase. Data from SoSoValue showed strong investor demand for the newly launched products. The funds launched earlier this week through multiple issuers.
Bitcoin and Ethereum ETFs experienced contrasting trends during the same period. Spot Bitcoin ETFs saw $191.6 million in daily net outflows on Friday. Spot Ethereum ETFs posted $98.2 million in outflows, reducing cumulative inflows to $14.37 billion.
Staking Yields Drive Investor Interest
Market participants describe the movement as capital rotation from established cryptocurrencies to newer opportunities. Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph that investors seek fresh narratives. Profit-taking in Bitcoin and Ethereum funds contributed to the outflows.
The Block reported that Grayscale's Solana ETF registered $1.4 million in net inflows on its October 29 debut. Bitwise's BSOL product added $46.5 million on the same day. Combined Bitcoin and Ethereum ETFs experienced over $500 million in outflows.
Bitwise's Solana ETF offers an estimated 7% staking yield to investors. This feature differentiates it from traditional price-tracking ETFs. Roughly 70% of Solana's circulating supply is already staked, creating supply constraints.
The timing coincides with favorable regulatory developments for digital assets. We recently reported that 15 US states are moving forward with plans for Bitcoin reserves, with Pennsylvania, Arizona, and New Hampshire proposing allocations up to 10% of public funds. This institutional interest extends beyond Bitcoin to alternative blockchain platforms.
Market Rotation Reflects Changing Preferences
Analysts suggest Solana's momentum could continue into next week as Bitcoin and Ethereum consolidate. Vincent Liu stated that rotation may stay alive while major cryptocurrencies pause. He noted that extreme macro volatility could change this trajectory.
Several new crypto ETFs entered the market this week beyond Solana. Canary Capital launched Litecoin and Hedera ETFs on October 28. Hong Kong approved its first spot Solana ETF last week, expanding regional access.
The shift represents a broader trend in institutional investment strategy. Investors appear to reallocate capital toward coins with growth potential and regulatory support. Solana's rapid ETF adoption reflects its appeal to institutions seeking alternatives.
JPMorgan analysts estimate that Solana ETFs could attract between $3 billion and $6 billion in the first year. This projection depends on investor adoption trends seen with Bitcoin and Ethereum products. The network processes over 3,500 transactions per second while hosting approximately 3.7 million daily active wallets.
Bitcoin and Ethereum ETFs experienced sustained outflows throughout the week. Bitcoin funds recorded $488.43 million in outflows on Thursday and $470.71 million on Wednesday. Ethereum funds shed $184.3 million on Thursday and $81.4 million on Wednesday. These withdrawals suggest investors are repositioning portfolios rather than exiting crypto entirely.
