Solana ETF Flows Turn Positive as Morgan Stanley Updates MSOL Filing

Solana ETF flows turned positive this week after Morgan Stanley submitted an amended filing for its proposed Solana ETF under the ticker MSOL. The move renewed institutional focus on SOL at a time when the token continued trading below major resistance levels. Spot Solana ETFs recorded $3.78 million in inflows on Tuesday after adding $2.06 million a day earlier, according to SoSoValue data.

SOL traded near $85 on Wednesday. Traders continued watching whether ETF demand and improving derivatives data could support a stronger recovery after the recent market pullback.

Morgan Stanley Files Amended Solana ETF Prospectus

Morgan Stanley submitted an amended preliminary prospectus for the Morgan Stanley Solana Trust, an exchange-traded fund expected to list on NYSE Arca under the ticker MSOL. The trust seeks to hold SOL directly and track the token’s U.S. dollar performance after expenses and liabilities.

The amended filing also includes staking. It says the trust may stake part of its SOL through third-party providers and reflect staking rewards in net asset value. Morgan Stanley said it would assess staking providers through factors such as performance, reliability, reputation, uptime, and slashing history.

The prospectus describes the trust as a passive investment vehicle. It states that the fund will not use leverage, derivatives, or similar arrangements to meet its objective. Instead, the product would offer direct Solana exposure through a traditional brokerage account.

That structure gives investors access to SOL without direct wallet management, private keys, or on-chain transfers. The filing also says the trust may distribute staking rewards at least quarterly when required under current IRS guidance.

Solana ETF Inflows Return Despite Price Weakness

Solana ETF flows improved at the start of the week, even as SOL crypto remained under pressure in the spot market. SoSoValue data showed $2.06 million in inflows on Monday, followed by $3.78 million on Tuesday.

That two-day run suggests institutional buyers continue to monitor Solana products despite the broader market pullback. The flow trend has also stayed positive through much of May, giving traders one data point to watch as SOL tries to stabilize.

However, price action remains cautious. SOL crypto price traded around $84 on Wednesday, below the 23.6% Fibonacci retracement level near $86.67 and the 50-day exponential moving average at $87.64. These levels form the first resistance area.

A stronger recovery would require SOL crypto to move above the 100-day EMA near $92.96. Analysts also watch the $97.89 to $98.53 zone as the next major resistance range. Until then, short-term rallies may face selling pressure.

Derivatives Data Shows Mild Recovery Signals

Derivatives data showed a slight improvement in trader sentiment. Solana funding rates turned positive on Tuesday and rose to 0.0063% on Wednesday, according to Coinglass data cited in the market update.

Positive funding rates show that long traders are paying short traders. In past market cycles, similar shifts from negative to positive funding have appeared near early recovery attempts. Still, the move needs support from spot demand and higher trading volume.

The long-to-short ratio for SOL crypto also recovered to 0.99 on Wednesday after falling to its lowest level in more than one month on Sunday. A move above 1 would show that more traders expect SOL to rise than fall.

CryptoQuant summary data also pointed to neutral or mildly positive conditions across spot and futures markets. That reading suggests the market has cooled after recent selling, though it does not confirm a full reversal.

SOL Price Holds Below Key Resistance

SOL remains in a corrective phase while it trades below short- and medium-term moving averages. Technical analysis has also turned positive, with Solana rebounding to around $85.65 after holding above the $84 support area. The RSI has climbed to 47.58, showing that buying pressure is improving after the recent pullback.

Meanwhile, the MACD histogram has turned positive at 0.283, suggesting that short-term momentum is shifting back toward buyers. MACD line is also moving closer to a bullish crossover, which could support a move toward the $90 range if volume improves.

Support remained near $77.71, while deeper downside support stood around $67.50. Failure to reclaim the $86.67 and $87.64 resistance levels could keep sellers in control of the short-term structure.

Morgan Stanley’s updated ETF filing has added another institutional angle to Solana’s market story. However, SOL still needs stronger buying momentum before traders can confirm a broader breakout above resistance.