The recent launch of the Solana ETF, which includes staking capabilities, caused a temporary price spike of SOL to $161. However, expert opinions suggest potential difficulties ahead.
ETF Buzz Sparks Temporary Rally
The announcement of the first Solana-based ETF, structured as a taxable C-corp, triggered a 7% price jump. SOL peaked at $161 before stabilizing around $157, attributed to the appeal of its staking feature.
Institutional Interest Still Weak
Despite the initial excitement, deeper analysis shows that institutional demand remains low. Grayscale’s Solana Trust holds just $75 million in assets compared to Grayscale’s Ethereum Trust, which managed $10 billion before the Ethereum ETF approval in 2023.
Major Token Unlocks Could Weigh on Price
Furthermore, the upcoming unlocking of approximately $585 million SOL over the next two months could exert additional price pressure, potentially leading to significant selling.
While the ETF news brought a burst of excitement, the underlying factors — low institutional demand, upcoming token unlocks, and lagging ecosystem growth — present a cautious outlook for Solana. Without new catalysts, SOL may struggle to maintain upward momentum.
