SOL Got Everything It Wanted This Week – Why Is It Still Dumping?

• Two Solana-based ETFs launched on NYSE Arca, drawing strong inflows.
• Western Union selected Solana to host its USD Payment Token stablecoin, launching in 2026.
• However, Jump Crypto rotated $205 million in SOL into Bitcoin on Thursday.

Solana’s (SOL) price has fallen 1.4% over the past seven days, despite a slew of announcements around institutional adoption that have pushed retail sentiment on Stocktwits to ‘extremely bullish’ from ‘bearish’ a week ago.

Solana’s price edged 0.7% higher on Friday and traded at around $187, still more than 36% below its record high of over $293, set in January at the time of President Donald Trump’s inauguration. The token also dropped 15% from the early October highs around $220.

A fall below $180 could temporarily reduce Solana's market capitalization to below $100 billion. 

ETF Launches Draw Record Inflows

The Bitwise Solana Staking ETF (BSOL) officially launched on the NYSE Arca on Tuesday, becoming the first U.S. exchange-traded product with full exposure to SOL. The fund stakes 100% of its holdings through a dedicated validator and reinvests rewards, offering direct yield exposure. BSOL recorded $69.5 million in first-day inflows and grew to $343.78 million in assets within three days, making it one of the most successful crypto ETF debuts on record.

A day later, Grayscale’s Solana Trust ETF (GSOL) began trading on NYSE Arca, drawing $1.4 million in first-day inflows. Meanwhile, combined open interest for XRP and SOL futures on CME hit a record $3 billion, signaling growing institutional participation. Institutional entities now hold 20.13 million SOL, worth more than $4.6 billion, concentrated among just 20 corporate holders.

Western Union Bet Offsets Jump Crypto Exit

Western Union announced plans to utilize Solana to power its upcoming USD Payment Token (USDPT), a 1:1 USD-pegged stablecoin set to launch in 2026, following a competitive evaluation of multiple blockchains. The move positions Solana as the backbone of Western Union’s network of 150 million customers in over 200 countries—a major step toward mainstream payments integration.

Jump Crypto Jumps Ship

Following these announcements, which happened within a span of 48 hours, Jump Crypto unstaked and transferred 1.1 million SOL, worth $205 million, to Galaxy Digital (GLXY) on Thursday.. In exchange, it received 2,455 BTC, or about $265 million. The swap effectively rotated Jump’s holdings out of Solana and into Bitcoin (BTC), underscoring thinning institutional conviction despite recent milestones.

According to on-chain data, Jump Crypto's holdings dropped 29.65% in value over 30 days despite holding 73% of their treasury in SOL, according to data from StakingRewards. Rather than doubling down or waiting it out, they cut their exposure and swapped into a safer asset. To retail investors, this suggested institutional conviction in Solana may be thinner than the recent ETF and Western Union headlines imply. 

This week’s price action showcases that Solana’s growing institutional legitimacy probably hasn’t translated into sustained price momentum, but retail traders are optimistic.

Read also: Bitcoin’s ‘Uptober’ Turns Into ‘Downtober’ – Analyst Warns Of Potential Pullback To $80K

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