An exchange-traded fund (ETF) backed by the Solana (SOL) cryptocurrency has become a sensation among Wall Street investors.
Since its release on October 28th, These instruments have maintained positive flows for 20 consecutive days.
Yesterday, November 24th, the Solana ETF raised $57.9 million. Since their appearance on the stock market, these instruments have recorded inflows of $568 million.
It is important to remember that the performance of these financial instruments can directly impact the underlying asset.
When demand for ETFs increases, managers must buy cryptocurrencies to back their stocks. If the opposite happens, the surplus will be sold, creating downward pressure.
A big question arises here. If inflows into Solana funds have already reached a total of 20 consecutive days; Why isn’t this impulse ultimately transferred to the price of the currency? Solana is 53% below its all-time high.
As CriptoNoticias explains, the Solana ETF has shown positive inflows, but the funds it attracts are small compared to the size of the SOL market. $568 million was added in 20 days, a modest number compared to the amount handled by Bitcoin (BTC) funds.
Also, these are recent, very small ETFs; Its weight in the market is still insufficient to drive continued bullish pressure on SOL.
