Bitwise Solana ETF tops $1 billion as network accelerates disinflation plans

ETF inflows and institutional accumulation

BSOL saw over $126 million in trading volume on Friday, marking its most active single-day performance to date. Over the previous seven trading sessions, total volume exceeded $500 million.

The fund recorded inflows for seven consecutive trading days. Collectively, Solana-related exchange-traded products have drawn in approximately $1.26 billion during this period, a figure representing around 2.2% of SOL’s total market capitalization. This rapid pace of capital allocation underscores a notable shift in institutional attention toward Solana, beyond the dominant Bitcoin and Ethereum products.

DeFi Dev Corp, an active participant in decentralized finance initiatives, recently acquired an additional 19,000 SOL, valued at roughly $1.86 million. With these purchases, the firm now holds about 2.33 million SOL, worth approximately $182 million at current market prices.

Bitwise, a crypto asset management company, has also reported continued inflows to its XRP ETF, with $15.4 million added and assets under management around $603 million.

BSOL recorded more than $126 million in trading volume on Friday, its strongest single-day performance to date, while total inflows to Solana ETFs have reached approximately $1.26 billion, reflecting rapidly growing demand among investors.

Derivatives drive price swings

SOL has experienced increased volatility, gaining close to 19% over the past week before encountering resistance and some selling pressure. The token recently traded at $103.43, down 2.25% in 24 hours, with a market capitalization of about $60.42 billion.

Futures activity in SOL has surged, with trading volume in derivatives markets reaching approximately $14.6 billion, in contrast to about $1.7 billion traded on spot markets. This sizable gap highlights the role leveraged derivatives play in amplifying price movements.

Despite the recent price dip, trading activity has remained robust. Daily total volume dropped 16.15% to $4.94 billion, and the ratio of trading volume to market capitalization stood at 8.17%.

The interaction between ETF inflows and high futures activity is adding complexity to SOL’s recent price action. While institutional inflows may create sustained buying demand, leveraged positions can quickly accelerate both upward and downward moves as futures contracts are opened or closed.

The combination of rising ETF demand and elevated derivatives activity creates a more complex picture for SOL, as institutional inflows can drive buying pressure while leveraged futures add to volatility.

Solana’s new disinflation policy

Solana validators have approved a proposal to accelerate the network’s disinflation schedule, marking the first measure to pass via Solana’s new on-chain governance process. The initiative, called SGP-0002 or “Double Disinflation,” raises the annual disinflation rate from 15% to 30%, with the long-term inflation target staying at 1.5%.

Final results showed 67% of participating stakeholders voted in favor, 25.16% against, and 7.84% abstained. Voter turnout hit 60.7% of eligible stake, according to official results.

Analysts at Solana Compass estimate the new schedule means Solana could reach its 1.5% terminal inflation rate within 2.8 years, rather than the previous 5.7 years. Approximately 18.9 million fewer SOL are expected to enter circulation over the next six years, potentially reducing dilution for existing token holders.

However, the reduction in new issuance will also mean lower staking rewards for validators and delegators, introducing a new trade-off between scarcity and earning potential for network participants.

The monetary-policy change introduces an additional variable for current and prospective SOL investors, as the network simultaneously attracts more institutional interest and tightens its issuance schedule.

Mini dictionary: SGP-0002 (“Double Disinflation”): A Solana governance proposal that increases the rate at which the network reduces inflation, aiming to reach the long-term 1.5% inflation target in less time and limit new token issuance.

Outlook for Solana’s institutional adoption

The convergence of surging ETF flows, increased derivatives activity, and a more aggressive disinflation schedule is heightening institutional focus on Solana. While the changes may benefit token holders via reduced dilution and easier access to the asset, the sustained impact will depend on continued ETF inflows and whether trading momentum shifts from derivatives to underlying spot demand.