An exchange-traded fund (ETF) based on the cryptocurrency Solana (SOL) lost money on its first day on the market.
Yesterday, November 26th, these instruments backed by Solana recorded an outflow of $8 million.
In this way, SOL ETF breaks 21-day streak in net capital flows.
These financial products have been available since their launch on October 28th. They raised over $613 million:
It is important to note that an ETF’s performance directly affects its underlying assets. If there is demand, management companies will need to acquire cryptocurrencies to support their activities.
On the other hand, when outflows are recorded, surpluses are removed, creating downward pressure on asset prices.
However, as CriptoNoticias explained, in the case of the Solana ETF, the price impact has been almost zero so far.
This is because although SOL ETF has accumulated funds, it is still small compared to the overall market size.
$613 million raised since debut This is small compared to the amount of movement in Bitcoin (BTC) funds.
Additionally, these ETFs are still new and relatively small, so they don’t yet have enough weight to create sustained bullish pressure.
