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Ethereum News Update: Institutions Show Preference for Solana Instead of Ethereum During Market Volatility

Ethereum News Update: Institutions Show Preference for Solana Instead of Ethereum During Market Volatility

Bitget-RWA2025/11/06 22:56
By:Bitget-RWA

- Solana ETFs surged with $197M inflows, outpacing Ethereum's $15.97M gains amid market volatility. - Ethereum ETFs lost $210M as Bitcoin faced $543M redemptions, driven by BlackRock's ETH offloading. - Solana's 65,000 TPS speed and $10.59B TVL attract institutional investors seeking scalable blockchain solutions. - Infrastructure upgrades and Western Union's 2026 stablecoin plan bolster Solana's institutional appeal. - Market reallocation highlights growing preference for high-performance altcoins over es

During the week ending October 31, 2025, spot Ethereum ETFs saw net inflows totaling $15.97 million, with Grayscale's

Mini Trust ETF leading the way by bringing in $56.05 million, as reported by . This signals renewed institutional interest following recent market swings, and Grayscale now oversees more than $1.54 billion in Ethereum ETF assets since inception. In contrast, Solana ETFs outperformed Ethereum, attracting $89.9 million in inflows last week, according to a , while another cited $197 million in inflows over just three days. This trend points to a shift among institutional investors toward high-throughput blockchain networks as the crypto market remains volatile.

The rapid growth of

ETFs stands in stark contrast to the outflows seen in and Ethereum ETFs. Bitcoin ETFs experienced $543.59 million in withdrawals, while Ethereum ETFs saw $210.43 million leave, largely due to BlackRock selling 31,754 ETH, as noted by Coinotag. Solana's popularity is largely attributed to its technical strengths: the network can handle 65,000 transactions per second, supporting scalable decentralized applications, and its total value locked remains at $10.59 billion despite a 3% decline in the past 24 hours, Coinotag reported. Analyst Lark Davis commented in a that Solana is outpacing Ethereum in terms of speed, user activity, and expansion, even as Ethereum continues to upgrade.

Solana's appeal to institutional investors is further strengthened by recent infrastructure upgrades. Alchemy has revamped Solana's RPC systems, resolving previous data access challenges and enabling quicker execution of getTransaction and getProgramAccounts queries, according to a

. These improvements prepare Solana to accommodate greater institutional participation as ETF adoption rises, with Western Union set to introduce a Solana-based stablecoin in 2026. Despite these advances, technical signals are mixed. Solana's price is around $159, with bearish EMA indicators and a negative CMF, as Coinotag highlighted. Nonetheless, ETF inflows point to ongoing accumulation, especially as retail interest returns. CoinGlass data reveals a 2.73% increase in futures open interest to $7.64 billion, along with $7.19 million in short positions liquidated, according to an . Meanwhile, Ethereum's price has reached $3,857, breaking above a descending trendline and indicating a possible bullish reversal, as Coinfomania observed.

The differing trends highlight a broader shift in market allocation. While Ethereum's Layer 2 ecosystem continues to lead in total value locked, Solana's streamlined single-chain design is drawing developers and investors looking for lower costs and faster transactions, as CoinEdition discussed. Grayscale's strong position in Ethereum ETFs, together with rising institutional interest in Solana, reflects a maturing crypto landscape where investors are diversifying between established assets and fast-growing alternatives.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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