Solana (SOL) Drops 8% Despite Launch of U.S. Spot ETFs

Solana’s native token, SOL, plunged 8% on Thursday, extending a week-long decline despite the highly anticipated debut of the first spot-based Solana ETFs in the United States. The drop below $180 erased all year-over-year gains and left the cryptocurrency down roughly 4% in 2025. In contrast, Bitcoin (BTC) and Ethereum (ETH) continue to show strong year-over-year growth of more than 40%, highlighting SOL’s relative underperformance.

The Bitwise Solana Staking ETF (BSOL) launched Tuesday, attracting $116 million in net inflows within its first two trading days, adding to an initial $223 million seed investment, according to data from Farside Investors. Meanwhile, the Grayscale Solana Trust (GSOL), recently converted from a closed-end fund into an ETF, recorded a modest $1.4 million inflow. While these figures demonstrate strong institutional interest, they weren’t enough to lift market sentiment.

SOL’s 12% decline since Monday’s highs was likely influenced by a major on-chain transfer identified by blockchain analytics firm Lookonchain. Data showed that Jump Crypto, a major trading firm, transferred 1.1 million SOL (worth approximately $205 million) to Galaxy Digital and received around 2,455 BTC ($265 million) in return. The move sparked speculation that Jump may be rotating its holdings from Solana to Bitcoin, adding selling pressure on SOL.

Despite the ETF milestone, Solana’s sharp drop underscores the market’s sensitivity to institutional movements and trading sentiment. While the ETFs mark a significant step toward broader adoption and legitimacy, SOL’s price action suggests investors remain cautious amid broader crypto market volatility. Long-term investors will be watching closely to see whether the new ETFs can ultimately stabilize demand and help Solana recover from this week’s downturn.