VanEck, a leading asset management firm, has officially registered a spot Solana (SOL) exchange-traded fund (ETF) in Delaware, signaling a potential step toward broader institutional adoption. This move could enhance Solana’s credibility and make it more accessible to traditional investors looking to diversify their crypto holdings beyond Bitcoin.
SOL Price Plunges Amid Market Sell-Off
Despite the ETF registration, Solana’s price has suffered a sharp decline, plummeting nearly 10% in the past 24 hours. The downturn follows a broader crypto market sell-off triggered in part by former U.S. President Donald Trump’s lukewarm stance on cryptocurrency reserves. While Bitcoin (BTC), Ethereum (ETH), and XRP have each dropped around 5%, SOL has slipped below $120.
At the time of writing, SOL is trading at $116.78, with a market capitalization of $59.44 billion, according to CoinMarketCap.
Market Volatility and SOL’s 60% Decline
Since reaching an all-time high of $294.33 on January 19, Solana has lost more than 60% of its value, experiencing extreme volatility along the way. The recent decline aligns with Bitcoin’s drop below $80,000, bringing it back to pre-U.S. election levels. Additionally, news of upcoming token unlocks has added further pressure on SOL’s price over the past month.
The ETF Race Heats Up
Following the approval of Bitcoin and Ethereum spot ETFs, Solana has emerged as a strong contender in the race to secure ETF approval, alongside XRP. Since the first spot Bitcoin ETFs gained regulatory clearance in January 2024, the gateway to crypto investments has widened for institutional investors. With Ethereum also securing its own ETF, several major cryptocurrencies are now seeking similar approval to be traded on traditional stock exchanges.
While VanEck’s Solana ETF registration is a promising step, market uncertainty continues to weigh on SOL’s price trajectory in the short term.
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