Solana News Update: Institutional Shift Toward Bitcoin Diminishes Solana ETF Progress

On October 30, Solana’s value dropped sharply to $182, experiencing its largest single-day decline since the market crash on October 10. This plunge followed Jump Crypto, a major institutional trading firm, offloading $205 million worth of

in exchange for , as reported by . The sell-off happened alongside the debut of the first U.S. ETFs, highlighting a broader trend of institutional funds shifting toward Bitcoin, even though the new ETFs attracted $199 million in investments, according to . The Bitwise Solana Staking ETF (BSOL) led the way, raising $222.8 million on its first day and offering a 7% staking return, according to . In contrast, Bitcoin ETFs saw $191.6 million in outflows just on Friday, indicating a movement of capital from the leading cryptocurrency to newer options like Solana.

Jump Crypto’s decision to swap 1.1 million SOL for 2,455 BTC was described as a “flight to safety” amid increased volatility ahead of U.S.-China trade talks, according to Yahoo Finance. The company, which has 73% of its staked assets in SOL, saw its total staked value fall by 29.65% over the past month, the report noted. Analysts linked the negative outlook to derivatives trading, with Solana futures volume climbing 7% to $32.61 billion and open interest rising 2.28% to $10.32 billion, as per Yahoo Finance. The long/short ratio of 0.93 suggested that short sellers were dominant during Solana’s 6% spot price drop, the report added.

The ETF-driven shift in capital wasn’t limited to institutions. Reliance Global Group increased its digital asset portfolio by purchasing SOL, adding to its existing Bitcoin,

, and other token holdings, according to . The company pointed to Solana’s fast and cost-effective blockchain as a strategic choice for managing liquidity and diversifying risk, CardanoFeed reported. Meanwhile, on-chain data showed a whale boosting its long position in SOL by $1.5 million, raising its total long exposure to $105 million, . These developments stood in contrast to the broader market’s nervousness, as Solana traders prepared for a possible dip below $180, which would reduce its market cap to under $100 billion, according to Yahoo Finance.

Even with the price drop, institutional interest in Solana continued to grow. Grayscale’s planned conversion of its Solana Trust into an ETF and Hong Kong’s approval of a spot Solana ETF pointed to increasing global recognition, the Kaupr article stated. Kronos Research’s Vincent Liu noted that the popularity of Solana ETFs reflected a search for yield-focused alternatives to Bitcoin and Ethereum, according to Bitget. However, technical signals were mixed: Solana’s price failed to break through the $200 resistance, with crucial support levels at $193 and $177.33 being closely watched, as analyzed in

. If the price falls below $193, further declines could follow, while a move above $200 might restore bullish momentum, Coinpedia added.

The market’s current dynamics—shaped by ETF inflows and institutional repositioning—highlight Solana’s dual role as both a growth asset and a speculative arena. As regulatory frameworks become clearer and staking innovations advance, the cryptocurrency sector appears set for an extended period of risk and reward adjustment.