Both Ethereum and Solana experienced notable declines in November, dropping by 20% and 25%, respectively. These losses have brought their values to lows not observed since July. However, the situation regarding their exchange-traded funds (ETFs) diverges dramatically.
Ethereum ETFs Experience Major Outflows
Spot Ethereum ETFs faced considerable challenges, recording their third-highest weekly outflow last week. According to data from SoSoValue, the outflow reached $728.6 million. This figure contributed to a staggering total of over $1.2 billion in outflows for the month, marking November as the worst month for Ethereum ETFs since their inception.
Solana ETFs Counter the Trend
In stark contrast, Solana ETFs have experienced ongoing inflows. Since their launch by Bitwise and Grayscale in late October, these funds have achieved 14 consecutive days of positive inflows, totaling $382 million. This trend marks a significant difference compared to the early days of Ethereum ETFs, which saw outflows amounting to $405.9 million in their first 14 days.
Market Insights and Comparisons
- Ethereum Holdings: Ethereum ETFs now manage nearly 6.4 million tokens, valued at $20.1 billion, which constitutes approximately 5.3% of Ethereum’s total supply.
- Solana Holdings: In contrast, Solana ETFs have only 0.6% of their total supply.
- Market Dynamics: Simon Dedic, CEO of Moonrock Capital, emphasized that SOL ETFs represent a smaller portion of the overall market compared to ETH ETFs.
Future Expectations
Tom Lee, chairman of BitMine Immersion Technologies, noted the ongoing weakness in crypto prices since the significant liquidation event on October 10. He attributed this trend to market makers potentially facing challenges with their balance sheets. Lee suggested that this situation resembles quantitative tightening (QT) within the crypto space, which tends to suppress prices.
Looking ahead, Lee predicts that a peak in cryptocurrency prices may emerge within a timeframe of 12 to 36 months.
