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- This milestone development is seen as a precursor to the potential approval of spot Solana ETFs, which would further integrate cryptocurrency with traditional finance.
- Whales have resumed accumulation, with a notable whale purchasing 50,000 SOL worth $6.77 million after previously selling 122,921 SOL for $28.23 million at higher prices.
Despite major volatility in Solana (SOL) price in recent weeks, there’s strong optimism surrounding the approval of the first Solana ETF in the US. In a recent development, the Depository Trust & Clearing Corporation (DTCC) officially listed the first-ever Solana futures exchange-traded funds (ETFs), thereby marking a significant milestone in the crypto landscape. Issued by Volatility Shares, the ETFs include SOLZ (Volatility Shares Solana ETF) and SOLT (Volatility Shares 2X Solana ETF).
Similar to Bitcoin and Ethereum, the arrival of futures Solana ETF will serve as a precursor to the potential approval of spot ETFs, further bridging traditional finance and cryptocurrency markets.
Market analysts have been quite bullish regarding the approval of Solana ETFs under the new SEC leadership and the Donald Trump administration. However, some of the largest asset managers like BlackRock are undertaking a cautious approach toward it.
As indicated in our previous discussion, BlackRock’s cautious stance highlights concerns over Solana’s institutional maturity and liquidity, which could dampen investor confidence. Meanwhile, firms like VanEck remain steadfast in their pursuit of a Solana ETF despite ongoing regulatory and market hurdles.
Will Solana Price Rally With Recent ETF Development?
Following the top of the $270 level in November 2024, the Solana (SOL) price has been moving sideways and has corrected nearly 50% within a span of three months. With more than 20% correction over the past week, SOL has now slipped under $140 levels testing investors’ patience. On the monthly chart, it is down by 41% as the frenzy surrounding the Solana-based meme coins comes to an end, as mentioned in our previous report.
Renowned crypto analyst IncomeSharks has shared insights on current SOL price action, stating after a strong correction investors should maintain some more patience and not give up on panic selling. The analyst wrote:
$SOL – You ignored the blow-off top and the warnings to wait for unlocks. Now, the irony will be ignoring buy signals once the selling pressure eases. Be patient; perhaps in one or two more weeks, it will present a far more appealing trade. The lower it goes, the less the risk.
SOL Whales Resume Fresh Purchases
Another positive indicator is that Solana whales have once again begun with fresh purchases. A prominent Solana whale has re-entered the market, purchasing 50,000 $SOL worth $6.77 million at the bottom just 7 hours ago. Between November 20, 2024, and January 21, 2025, this same whale offloaded 122,921 SOL for $28.23 million at an average price of $230. With the recent dip, the whale has strategically repurchased SOL at a significantly lower price, as per data from Solscan.
