Solana Futures ETF performance is ‘nothing against Bitcoin’ – Analyst

• SOL ETF Futures merchandise have did not mirror BTC’s success. 
• Will the identical destiny befall possible U.S. spot SOL ETF merchandise? 

Senior Bloomberg ETF analyst Eric Balchunas famous that not too long ago launched Solana [SOL] ETF (exchanged traded funds) Futures haven’t matched the efficiency of comparable BTC merchandise.

Balchunas said, 

“The brand new Solana futures ETF hasn’t carried out a lot, 1,000,000 in quantity first few days is respectable for regular ETF however nothing vs BTC, about 80x lower than $BITO’s first few days or $IBIT’s.. The additional you get away from btc the much less asset there can be.” 

Supply: Bloomberg

The SOL ETF Futures merchandise by Volatility Shares debuted on the twentieth of March and tapped $1 million in buying and selling quantity throughout the early buying and selling days.

Nonetheless, as proven by the hooked up Bloomberg chart, volumes tanked considerably on thirty first March, with a report low of $48K. 

Solana vs. Bitcoin

Balchunas had earlier projected that their dominance on the spot market might dictate curiosity in new ETF merchandise.

At the moment, BTC dominates the market with 61%, adopted by Ethereum [ETH] at 8%, whereas SOL is fifth at 2.4% after being flipped by Binance Coin [BNB] not too long ago. 

Supply: CoinMarketCap

Just like the market dominance chart, BTC ETFs have recorded probably the most traction since their debut. The spot BTC ETFs have recorded $36B in cumulative inflows since they launched final 12 months.

Quite the opposite, U.S. spot ETH ETFs, launched final July, noticed $2.4B in cumulative inflows — A 15x lower than BTC ETFs. 

If accredited, will the identical pattern observe U.S. spot SOL ETFs? In truth, even the not too long ago launched SOL CME (Chicago Mercantile Trade) Futures echoed the same pattern projected by Balchunas. 

On the debut day, SOL CME Futures had $12M in buying and selling volumes, almost 10x lower than BTC CME Futures ($102M) and ETH’s $31M. 

Moreover, speculators appeared extra snug with BTC throughout market-wide drawdowns than ETH or SOL. Through the Q1 retracement, SOL underperformed BTC by almost 50%. 

Supply: SOL/BTC, TradingView

An prolonged weakening might drag the SOL/BTC ratio to 0.0012 (trendline assist) earlier than a possible rebound.

The indicator gauges SOL’s value efficiency relative to BTC. In the meantime, the altcoin was valued at $128 on the time of writing and nonetheless held above the essential $120 yearly assist.