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- SOL fell nearly 5% after the BSOL ETF launch amid profit-taking.
- Liquidity risks exist due to staking all SOL in the ETF.
- Positive Funding Rates and rising Open Interest are needed for a bullish shift.
Solana (SOL) experienced a swift pullback hours after the Bitwise Solana Staking ETF (BSOL) debuted. The launch initially generated excitement, but the token slipped nearly 5% to $194, signaling a classic “buy the rumor, sell the news” scenario. Early ETF inflows suggest strong investor interest, yet short-term price action shows traders locking in gains.
ETF Inflows Strong, But Liquidity Risks Linger
BSOL attracted $69.45 million on day one, bringing total assets under management to $289 million—around 0.27% of Solana’s market cap. While the numbers highlight robust demand, experts warn of structural risks. Bitwise plans to stake all SOL in the fund, which could limit liquidity during large redemptions. In such cases, the ETF may convert “Moderately Liquid Solana” into “Highly Liquid Solana” through third-party trades, potentially impacting the fund’s NAV temporarily.
On Oct. 28, the first U.S. Solana spot ETF — the Bitwise Solana Staking ETF (ticker: BSOL) — was listed, recording $69.45 million in net inflows on its first day, bringing its net asset value to $289 million. Following its debut, the fund’s total net assets reached $289 million,… pic.twitter.com/jG6RmAakAp
— Wu Blockchain (@WuBlockchain) October 29, 2025
Traders Take Profits Amid Cautious Sentiment
After the launch, SOL’s price action showed strong selling pressure. Large red candles and spikes in trading volume indicated active profit-taking, while RSI and OBV pointed to weakening momentum. Open Interest climbed to $4.36 billion as traders reopened leveraged positions, yet a negative average Funding Rate of -0.18% suggests short positions still dominate. This implies the market remains cautious, with many anticipating further downside.
What’s Next for SOL?
Solana’s short-term trajectory hinges on a shift in sentiment. For sustained gains, a positive Funding Rate and rising Open Interest are critical indicators of renewed bullish confidence. Investors and traders alike will be watching ETF flows and liquidity conditions closely in the coming days.
The BSOL ETF launch confirmed Solana’s strong institutional appeal, but the immediate SOL pullback highlights the delicate balance between inflows, liquidity, and trader sentiment. The token’s next move will depend on market confidence and how quickly liquidity pressures ease.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Solana Faces $250 Wall as Bull Momentum Fades
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
