Solana ETPs Record $706M in Weekly Inflows - 127% Higher Than Previous All-time Highs

Institutional money is capitalizing on the U.S. Government shutdown to increase $SOL exposure ahead of ETF approvals.

With the final deadline for ETF approvals just days away, Solana-based ETPs outside the U.S. are witnessing historic inflows. 

Meanwhile, low liquidation data indicates that the current market surge, and $BTC’s push to new all-time highs, are largely spot-driven, setting a strong base for the remainder of Q4.

Solana ETPs Enjoy Record Inflows

All the lights are off in the White House, but crypto markets are looking more lively than ever. Contrary to expectations, markets are reacting favorably to the U.S. Government shutdown, with millions pouring into crypto markets as, in Bloomberg’s words, $BTC proves itself as a “Safe Haven”.

While the Government shutdown may have put a temporary pin in ETF proceedings, institutional funds across the globe are seizing this opportunity to increase their exposure. According to Coinshares, Solana-based Digital Asset Products and ETPs recorded over $706M in weekly inflows.

Bringing the total AUM of Solana ETPs past $5.1B, last week’s inflows were more than double the previous all-time high of $311M, recorded in July.

REX Shares Solana Staking ETF, $SSK, continues gaining momentum on Wall Street. The lone U.S.-based $SOL ETF currently boasts over $406M in AUM.

Low Liquidations Suggest Bullish Push is Spot-Driven

While Wall Street traders and the traditional financial players of yesteryear hung up their ties for the weekend, Bitcoin and the wider crypto markets have been putting in new all-time highs. 

Bitcoin crawled further into uncharted territory, reaching $125,500 on Sunday. Meanwhile, the total market cap of all crypto assets currently sits at a new all-time high of $4.29T.

However, unlike the last Bitcoin all-time high, the ongoing move seems to be largely driven by spot accumulation. When $BTC cracked $123k for the first time back on August 14, much of that price action was driven by over $764M in short liquidations in the preceding 48 hours, according to Coinglass data.

This time around, only $370M worth of short positions have been liquidated in 48 hours en route to new all-time highs. Markets are far less volatile than they were around two months ago, with spot buying driving price discovery.

Additionally, Michael Saylor’s Strategy has indicated that the firm will not be buying any $BTC this week, meaning that participants are becoming less reliant on Saylor’s seemingly endless bid.

Within the Solana ecosystem, memecoins and other ‘risk-on’ assets seem to be catching the bulk of the market’s attention and liquidity. Coingecko data reports that, among established tokens, $USELESS and Believe’s $LAUNCHCOIN are the week’s best performers, up 82% and 67% respectively on a weekly timeframe.

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