Solana ETFs Record $35M in Weekly Inflows as US-Iran Ceasefire Draws to a Close

Once again, the weekend has proven itself a dangerously volatile period for markets, with Friday’s promise of a reopened Strait of Hormuz getting walked back after trading closed for the week.

After briefly sending Bitcoin back over $77,000 for the first time since February 3rd, the cancellation of a second round of peace talks has sent crypto back into uncertain territory.

However, Solana ETF investors appear unfazed. Despite the looming threat of a large scale oil crisis, $SOL ETFs have recorded their strongest week since late February, attracting $35M in net flows.

$SOL Drops 7% During Weekend Volatility

For a brief window of time, Iran’s announcement that the Strait of Hormuz had reopened sent global markets into a wave of euphoria. With Bitcoin back above $77,000 and the S&P 500 securing a weekly gain of 4.65%, global markets were resoundingly optimistic that the impending energy crisis had been averted.

Optimism was quickly scuppered, however, after the Iranian government reportedly rejected a second round of peace talks in Islamabad, Pakistan. Iran claims to be “facing deception” from President Trump, contending there is "no clear prospect of fruitful negotiations" with the United States. 

In the hours leading up to Monday’s market open, peace talks are expected to proceed, with Iranian officials confident that a resolution can be reached.

Meanwhile, the U.S. military has reportedly struck and seized an Iranian vessel within the Strait of Hormuz, prompting an immediate retaliation and escalating the conflict anew. In a recent Truth Social post, President Trump has once again threatened to target Iranian power plants and bridges, should both sides fail to reach a deal.

Naturally, the political see-sawing from both sides has caught crypto markets in a vicious cycle of volatility and changing sentiment. The reclosure of the Strait of Hormuz sent $SOL down over 7.1%, while a 5.2% decline in $BTC inflicted over $400M in liquidations across crypto markets.

Despite mounting tensions, markets remain optimistic that the standing ceasefire, flimsy though it may be, will be extended. Polymarket data suggests the US-Iran ceasefire has a 67% chance of being extended by the April 21st deadline.

Solana ETFs Record $35M Net Inflows

While crypto markets continue to get rinsed by geopolitical maneuvers, institutional investors are using the volatility to bolster their Solana spot ETF positions. Market data indicates that $SOL ETFs recorded their strongest week since February 27, breaking three consecutive weeks of outflows and bouncing back with a net flow increase of $35M.

Outside U.S. markets however, institutional players are still hesitant. Coinshares data suggests that Solana-based Digital Asset investment products witnessed $2.3M in weekly outflows, marking a second-straight week of losses.

Bitcoin and Ethereum products performed comparatively well, netting $1.1B and $328M in weekly inflows, respectively.

Insiders Plunder Oil Perps Markets?

Amidst a backdrop of rising tensions and political flip-flopping on both sides of the conflict, market dynamics suggest that insiders are reaping the benefits of a headline-driven economy.

In the minutes leading up to the reopening of the Strait of Hormuz, traders reportedly opened $760M worth of Brent Crude Oil shorts. This reflects a similar move witnessed on April 7, when $950M worth of oil futures contracts were sold shortly before the announcement of the two-week ceasefire.

Market participants are rapidly growing frustrated with what traders consider flagrant insider activity without consequence. Peace talks are expected to resume this week, with Vice President JD Vance expected to arrive in Islamabad later today.

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