SOL: Coming Tailwinds

It’s a Flows-Based Market

We are firmly in a flows-based market. In the past few months, institutional capital (via DATCOs and ETFs) has been driving crypto markets while crypto-native capital has taken a backseat. Since the approval of ETH Spot ETFs in July 2024, BTC & ETH have remained the only two cryptoassets with a structural funnel to TradFi flows.

In this regard, ETH has outperformed BTC ETFs in net inflows since July 2025. Since July 1, ETH ETFs have registered $9.1B in net inflows vs. $5.1B for BTC. The difference is even more stark when adjusted by market cap, with Ethereum ETFs accumulating 2% of ETH’s supply during the same period vs. 0.22% for BTC, almost a 10x difference.

TradFi’s sudden appetite for ETH coincides with Tom Lee’s emergence as a figurehead for the asset, with Bitmine (BMNR) consolidating as the largest Ethereum DATCO. In eight weeks, Ethereum DATCOs have bought ETH relentlessly, with combined holdings now surpassing $14B. Combined with the ETFs, this has translated to $22.7B of net flows for ETH in the past two months, equivalent to 4% of its current market cap.

SOL Joins the Party