The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on Franklin Templeton’s application for a spot Solana exchange-traded fund (ETF), though analysts now indicate a 90% probability of approval by July or October. This regulatory development emerges as market participants exhibit restrained trading activity around SOL despite recent price pressures.
Data indicates significantly reduced profit-taking behavior among SOL holders, with realized profits dropping to $32 million on June 17 – well below earlier peaks. Concurrently, both spot and futures market demand for Solana have cooled since mid-May, driving a 22% price correction from $180 to current levels near $147.
Industry projections suggest an ETF approval could rapidly reverse bearish trends. Market maker GSR forecasts SOL’s price could surge between 1.4x and 8.9x post-approval, potentially reaching targets of $170 to $1,000 due to anticipated institutional inflows. This outlook factors in historical patterns observed after Bitcoin and Ethereum ETF introductions.
The SEC’s ongoing dialogue with issuers, including substantive talks about staking mechanisms within fund structures, signals regulatory openness toward Solana-based products. Market confidence continues building around the likelihood of approval given the agency’s constructive engagement with applicants.