Key takeaways
Why did Solana price drop after the launch of the Bitwise ETF?
Despite inflows of $69 million, traders took profits, leading to a 5% drop in SOL price.
What is the main risk of the new Solana ETF?
Bitwise plans to stake all SOLs in the fund, which could restrict liquidity during large redemptions.
solarium [SOL] I didn’t waste any time changing the script.
Hours after long-awaited Bitwise Solana ETF Stake [BSOL] It started, the checker slipped; a classic case of “buy the rumor, sell the news.”
Is this drop simply a pause or the start of a longer cooldown?
Capital inflows strong, but repayment risks emerge
BSOL done a solid entry yesterdayattracting $69.45 million in capital inflows on the first day and raising total assets to $289 million; approximately 0.27% of Solana’s market capitalization.
Source: X
While the launch shows Solana’s strong investor appeal, ETF expert Nate Geraci marked a structural risk. Bitwise plans to stake 100% of the SOL held in the fund, so liquidity could tighten during large redemptions.
Source: X
According to Bitwise’s filing, if delays in staking occur, the trust can exchange “Moderately Liquid Solana” (pending cooling) for “Highly Liquid Solana” through third-party trading.
This is a process that could slightly reduce the fund’s NAV during high redemption periods.
SOL falls after ETF debut
In the hours after BSOL went live, SOL’s price fell to around $194, nearly 5% off its pre-launch highs.
Source: TradingView
The one-hour chart was showing strong selling pressure at press time, with large red candles and spikes in trading volume indicating profit-taking. The RSI showed weakened momentum, while the OBV demonstrated reduced buying activity.
Despite strong ETF inflows, SOL’s near-term prospects remain uncertain as traders appear to be locking in early gains.
Leverage increases, but caution prevails
Solana open interest rose to $4.36 billion, so traders are reopening leveraged positions after the ETF launch.
However, the average funding rate remained negative at -0.18%, meaning short positions still outweigh long positions.
Source: Coinalyze
This means that despite increasing market activity, sentiment is cautious and many traders are betting on further declines.
For SOL to rise, a shift in funding rates into positive territory and continued open interest demand would be key signals of bullish sentiment.
