Crypto Markets Shed $133B as VanEck’s Staking Solana ETF Sparks Fresh ETF Battle
The digital asset market faced a sharp correction over the past 24 hours, erasing roughly $133 billion in value in one of the steepest single-day pullbacks this quarter.
The sudden downturn triggered panic among traders, accelerated liquidations across major exchanges, and deepened uncertainty in an already fragile macroeconomic environment.
According to derivatives data, more than $1 billion in leveraged positions were wiped out, with long traders absorbing the majority of the impact, over $718 million, as prices slid rapidly. High leverage amplified the sell-off: once prices dipped, exchanges began liquidating positions automatically, adding further pressure and fueling a cascade of forced selling.
Bitcoin and Ethereum led the downturn, dragging the broader market with them. Smaller-cap tokens fared even worse, as traders rushed to sell less liquid assets, intensifying volatility across the board. Analysts point to a combination of global economic concerns, rising interest rates, inflation, and a retreat from risk assets, as catalysts behind the drop, compounded by crowded leverage and negative market sentiment spreading across social platforms.
Despite the turmoil, activity in the crypto investment product sector is moving in the opposite direction.
VanEck’s New Solana ETF Adds Fuel to the U.S. Spot-Product Boom
On the same day markets tumbled, VanEck launched its new spot Solana ETF, VSOL, becoming the third U.S. issuer to offer staking rewards within an ETF structure. The product joins similar offerings from Bitwise and Grayscale, which together have attracted over $380 million since late October.
To quickly capture market share, VanEck temporarily waived its 0.3% management fee until February, or until the fund reaches $1 billion in assets, signaling aggressive competition in a crowded ETF race accelerated by the SEC’s streamlined approval process introduced in September.
Industry momentum is building further: Fidelity is set to debut its own Solana spot ETF, while Grayscale awaits regulatory clearance to convert its Dogecoin Trust into the first U.S. spot ETF holding DOGE directly. Bitwise may not be far behind, following updates to its own filing earlier this month.
This rush of new products underscores the expanding sophistication and diversification of crypto investment vehicles beyond Bitcoin and Ethereum.
Outflows Rise as Investor Caution Deepens
Yet enthusiasm for new ETFs comes at a time of notable capital flight. Digital asset investment products saw their largest weekly outflows since February, with $2 billion exiting the market last week. Over the past three weeks, withdrawals totaled $3.2 billion, driven largely by U.S. investors. Assets under management in spot products have fallen nearly 27% from early October highs, now hovering around $191 billion.
Switzerland and Hong Kong also recorded outflows, $39.9 million and $12.3 million respectively, highlighting uneven liquidity across global markets.
The contrast is stark: while innovation accelerates with Solana and Dogecoin ETFs gaining momentum, investor sentiment remains cautious amid macroeconomic pressures and ongoing price declines.
