One important factor that caused the outflow is the presence of large institutional investors. As institutions rebalance portfolios, shift risk exposure, or close out positions for quarterly or tax-related reasons, they tend to do so in large blocks. These block trades can create a day of unusually high inflows or outflows that may not reflect the broader trend.
Another possible factor was a minor issue in the Solana ecosystem that occurred around the same time. Sources indicated that a security-related incident in late November led some participants to exercise caution. Since this development did not have significant spillovers on Solana’s price or network activity, it might have provoked risk-sensitive investors to adjust their positions.
There were also deeper market dynamics at play, impacting all crypto ETFs. The onslaught of launches and conversions in the wake of the SEC’s new regulatory framework in September 2025 further catalyzed the competition for distribution channels.
As flows into Bitcoin and Ethereum-focused ETFs ebbed and flowed, spillover effects into smaller assets like Solana were commonplace. Changes in liquidity, market attention, or advisor recommendations will naturally lead to temporary distortions in this set of altcoin ETFs.