Solana ETF Sparks Price Jump but Long-Term Rally in Doubt
2025-07-01 03:01:28
Main Idea
Solana's SOL token rose 7% following the announcement of the first Solana ETF with staking capabilities, but the rally faces challenges from limited institutional demand, upcoming staking unlocks, and competition.
Key Points
1. The first Solana ETF, introduced by REX Shares and Osprey Funds, bypasses SEC approval by using a taxable structure, leading to a 7% rise in SOL's price.
2. Grayscale’s Solana Trust (GSOL) manages significantly less capital than its Ethereum Trust, indicating modest institutional demand for SOL despite the new ETF.
3. Approximately $585 million in SOL will unlock from staking in the next two months, potentially increasing selling pressure.
4. Major Solana-based DApps, like Pump, have offloaded $404 million worth of SOL in 2025, contributing to price pressure.
5. Solana’s network revenue has dropped over 90% since January, and competition from Ethereum’s layer-2 solutions further challenges its market position.
Description
Solana’s native token SOL jumped 7% on Monday following confirmation of the launch of the first Solana ETF featuring staking capabilities. The new product, set to debut Wednesday, ignited a wave of optimism among traders, briefly pushing SOL to $161 before settling at $157. Innovative ETF Structure Bypasses SEC Approval The ETF is being introduced by REX Shares in partnership with Osprey Funds. To sidestep the traditional SEC approval process, they created a taxable C-corporation. This structure...
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