- Solana’s ETF debut with staking attracted early attention but did not lead to strong institutional interest.
- Continuous token unlocks and DApp sales are limiting SOL price momentum.
- Solana briefly rose 7% after the ETF news, peaking at $161 before stabilizing.
- The ETF launches through a taxable C-corporation, avoiding standard U.S. SEC procedures but also changing tax implications for investors.
- Decreased network activity and competition from other projects are contributing to slow growth in SOL’s value.
Solana’s token, SOL, climbed 7% on Monday after confirmation that a new exchange-traded fund (ETF) offering staking would launch Wednesday. The announcement prompted speculation about whether this move, coordinated by REX Shares and Osprey Funds, could drive institutional investments and increase SOL’s price.
SOL hit $161 before settling at $157, recording a 4% gain in the past 24 hours. The ETF provider sidestepped the usual U.S. Securities and Exchange Commission approval by forming a taxable C-corporation, a model often used in sectors like energy rather than crypto. Unlike regular cryptocurrency ETFs, this structure leads to dividend income being taxed for both the corporation and the investor.
After the initial excitement, traders adjusted their outlook. The report states that similar ETFs could become available for many other digital coins. Current institutional demand remains low; Grayscale’s Solana Trust (GSOL) manages about $75 million, a small figure compared to Grayscale Ethereum Trust (ETHE) which held $10 billion just before the spot Ethereum ETF began trading.
Although Solana’s ETF is the first of its kind, several factors put pressure on SOL’s performance. Around $585 million in SOL is scheduled to unlock from staking in the next two months, according to DefiLlama. DApps like token launch platform Pump reportedly moved more than $404 million in SOL to exchanges in 2025, as noted by Onchain Lens. These events increase available supply and could weigh on SOL’s value.
Recent comparisons show SOL’s 30-day performance nearly matches that of Ethereum (ETH) and Binance Coin (BNB), despite recent ETF news. SOL futures funding rates have not exceeded the 10% annual marker that might signal major bullish demand. Additionally, network revenue has declined by over 90% since January, signaling lower user activity.
Robinhood’s choice of an Ethereum layer-2 network for tokenized stock trading and Coinbase’s June 12 partnership with Shopify on Ethereum’s Base Network further reduce Solana’s competitive edge for high-transaction DApps.
Overall, there is little indication that the new ETF will trigger a significant rally for SOL, given current market trends and muted institutional participation. For more information, visit laevitas.ch.
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