With Over $700mn Inflows, Spot Bitcoin ETFs Bounce Back Amidst SOL Futures ETF Launch
With Over $700mn Inflows, Spot Bitcoin ETFs Bounce Back Amidst SOL Futures ETF Launch By Vishakha Thakur
After over $5bn in continuous outflows for the past five weeks, Spot Bitcoin ETFs are back in the spotlight with significant inflows of over $700mn in the past week. BlackRock, the world’s largest asset manager, led the charge with inflows of over $400mn.
Adding to this momentum, Solana has officially entered the ETF space with two futures-based ETFs launched by Volatility Shares in the U.S, paving the way for a Spot Solana ETF. Solana’s current price is $128, and Bitwise predicts that by the end of 2025, the price of SOL could reach $750.
Bitcoin recently touched the $86k mark and gave a fillip to other cryptocurrencies as well as the Federal Reserve left interest rates unchanged and U.S. President Donald Trump stated that his administration is ending former President Joe Biden’s regulatory war on crypto and Bitcoin.
With brimming optimism in the crypto market, significant inflows have been witnessed in the U.S. Spot Bitcoin ETFs, but spot ETH ETFs have continued their outflow streak.
Spot Bitcoin ETFs currently hold over $96bn in assets under management. If we look at the history of Bitcoin and Ethereum ETFs, both started with futures ETFs, and then spot ETF approval came. After Bitcoin, Ethereum, and now Solana has also joined the ETF club. On March 20, Volatility Shares launched two Solana Futures ETFs in the U.S. market.
Bloomberg’s Eric Balchunas also believes that Solana ETFs could follow the same roadmap as Bitcoin and Ethereum. US SEC rules also point in this direction—any crypto’s Spot ETF approval requires a well-established presence in the futures market.
This is a big signal for investors that Spot Solana ETFs may be approved soon. Asset managers such as Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital have filed for a Spot Solana ETF.
On March 20, Volatility Shares launched two Solana Futures ETFs:
- Volatility Shares Solana ETF (SOLZ) – offers standard SOL futures exposure
- Volatility Shares 2X Solana ETF (SOLT) – offers leveraged exposure, meaning it amplifies Solana’s price moves by 2X.
However, this is different from a Spot ETF as Futures ETFs do not hold actual SOL tokens; instead, they track price movements via futures contracts. If Spot ETFs are approved, they would be a better option for investors as they would hold actual SOL backing. The SOLT is a leveraged ETF, meaning if Solana’s price increases by 1%, it can move by 2% or more!
Spot ETFs hold actual assets, track the asset price more closely, and typically have lower volatility, making them suitable for long-term investors. Futures ETFs hold futures contracts, not the actual asset, can deviate from the actual asset price, and generally have higher volatility, making them best suited for short-term traders.
Sounds great, right? But if the market reverses, losses could also be doubled or tripled. For this reason, leveraged ETFs are not suitable for long-term investors, but only for short-term and high-risk traders.
As for the fees, the SOLZ ETF has a fee of 0.95%, and the SOLT ETF has a fee of 1.85%.
Interestingly, Bitwise Asset Management has set a $750 bullish target for 2025. Looking long-term, the bull case is that SOL could reach $6,636 by 2030, while the bear case projects $2,318.
This means if an investor has a long-term view, this could be a solid accumulation zone, but always consult your financial advisors first!
Bitwise sees SOL reaching $750 by 2025 due to strong DeFi & NFT adoption, institutional interest in Solana’s ecosystem, and high network activity and transaction speed.
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