“We’re So Back?” - Solana ETFs Eclipse $1B in AUM Amidst Market Surge

After a disappointing Q4, crypto markets have burst into the New Year with confidence and optimism. With $SOL grinding back above $135 and institutions continuing to drip-feed capital into Solana ETFs, crypto investors are viewing 2026 with renewed enthusiasm.

Beyond 20-straight days without outflows and a new record-high AUM in Solana ETFs, onchain traders seem to be flocking back to the memecoin trenches.

Can crypto traders start to believe again, or is the opening week of 2026 nothing more than a dead cat bounce bringing temporary relief to a larger downtrend?

$SOL ETFs Crack $1B in AUM

Off the back of 20-straight days without capital outflows and a 9% price increase since January 1st, Solana ETFs have collectively cleared their first billion-dollar milestone. According to SoSoValue, the total AUM of $SOL ETFs currently sits at just over $1.02b, representing around 1.38% of the asset’s total market cap. 

Consistent inflows into Solana ETFs suggest that institutional appetite for $SOL is still far from satisfied. As evidenced by yet another 20-day streak, TradFi players are adamant that $SOL best days are still coming. 

Speaking with SolanaFloor at the 2025 Breakpoint conference, Bitwise CIO Matt Hougan affirmed that some institutional investors still envision a 10x return on $SOL.

Having successfully beaten rival $SOL ETF issuers to market in the midst of the longest government shutdown in U.S. history, Bitwise commands a strong lead in the institutional $SOL arms race. At press time, $BSOL boasts 66.79% of $SOL ETF market share.

Crypto Markets Catch Cautiously Optimistic Bid

While many crypto traders and investors were left disappointed and disenfranchised by an underwhelming Q4, experts are now calling for a bullish continuation and extension of market cycles in 2026. Analysts like Raoul Pal and Bitwise CEO Hunter Horsley have declared the death of the four-year cycle, setting high expectations for the year ahead.

With five days of 2026 under our belt, markets are reflecting this enthusiasm. Perhaps inspired by the U.S. Military’s seizure of Venezuelan President Nicolas Maduro and the nation’s oil infrastructure, crypto markets have flipped resoundingly bullish.

Since January 1st, over $765.4M in short positions have been liquidated across crypto markets, pushing $BTC back over $93k for the first time since December 11, 2025. Granted, a 6% move in weekly Bitcoin prices is hardly enough to confirm the existence of a 5-year cycle, but the surge has brought the bulls out of hiding and back into the arena.

Social media commentators now find themselves caught between calling for new all-time highs across the board or conceding that markets are in the midst of a temporary relief rally. 

Memecoins Lead Market Recovery

With the Crypto Market Fear and Greed Index flipping ‘Neutral’ for the first time since October, DeFi traders seem to be pouring funds back into the memecoin trenches in search of the fabled gains of previous ‘risk-on’ seasons.

Politically-themed coins have roared back into popularity following geo-political movements in the real world. More established memecoins like $BONK, $PENGU, and $WIF, have comfortably outperformed blue-chip assets, suggesting there’s still plenty of ‘froth’ amongst market participants.

According to Blockworks data, memecoin daily volume share across Solana’s onchain economy has risen to 23%, its highest point since September 7, 2025. While Solana’s trench dwellers are optimistic about the prospect of a revival in onchain markets, more cynical players are wary that this will only lead to another “crime season” dominated by insiders and extractors.

Read More on SolanaFloor

What Caused the Solstice $USX De-Peg?

Solstice Assures Holders $USX Remains Fully Backed as Stablecoin De-Pegs on Secondary

2025 Solana Recap: