Institutional investors are increasingly pulling back from Solana (SOL) through its exchange-traded products (ETPs), signaling a notable shift in market sentiment and positioning. Recent data reveals substantial outflows from these products, reflecting sustained price weakness in SOL and prompting broader de-risking among institutions.
Solana ETPs Face Record Outflows
Solana-linked ETPs have experienced significant capital flight, recording one of their largest daily outflows on record. A single session saw $11.9 million in net outflows, marking the second-largest daily exodus since these products began tracking flows. This trend extends to a weekly basis, with Solana ETPs posting a net outflow of $8.92 million, flipping decisively negative after several weeks of weakening inflows. Consequently, total assets under management (AUM) have plummeted from peaks above $1.1 billion to $727.97 million. This sharp contraction suggests that investors are actively reducing their exposure to Solana rather than merely reallocating capital within the ecosystem, indicating a clear institutional retreat.
SOL Price Mirrors Institutional Retreat
The price action of SOL has closely tracked this deterioration in ETP flows. After a failed recovery attempt in January that saw SOL rebound towards the $140–150 range, the rally stalled, and the cryptocurrency quickly reversed course. SOL has since resumed a pattern of lower highs and lower lows, with selling pressure intensifying into early February and the token trading near multi-month lows around $85. Technical indicators further underscore this bearish sentiment; the daily Relative Strength Index (RSI) has fallen below 30, placing SOL in oversold territory without any clear bullish divergence or base formation. The lack of stabilization in both ETP flows and price metrics suggests ongoing pressure, with these institutional outflows acting as a confirmation signal of continued risk reduction rather than an indicator of a market bottom.
