Key points:
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SOL remains pinned below $200 even as Solana ETF Daily Trading Volume impressed analysts.
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Analysts say that the SOL Price action may reflect the lagging performance of ETH after the launch of the Ethereum Spot ETFS.
Traders and analysts are highly bullish on SOL (Sol) throughout September, citing the US Securities and Exchange Commission’s deadline for a partial ETF approval and the stellar performance of BTC and ETH ETFs as a thesis for positioning ahead of the event.
At this time, the data showed different cohorts of investors piled into sol futures and spot holdings, but the US government shutdown threw the deadline into limbo, and the sharp total liquidation event in the crypto market on October 10 sent the price of the altcoin below $147 on some crypto exchanges.
Fast forward to the present, and the market now has two new SOL ETFS trading this week. Grayscale Investments launched its staking-enabled Solana Spot ETF (GSOL) on Wednesday, while on Tuesday, the bitwise Solana Staking ETF (BSOL) went live. Cointelegraph reported that BSOL launched with $222 million in assets and ended the second day of trading with $ 72 million in trading volume.
Before the US government shutdown and the October 10 sell-off, analysts predicted that a Solana ETF approval and successful launch would kickstart a SOL price rally in the $300 to $600 range, yet the Altcoin is currently trading under $200.
When asked about the situation and whether or not the SOL trade turned out to be a bullish style outcome, Hyblock analysts said:
“BTC ETF launch and BTC price also have a similar launch relationship. BTC price is trending flat and down (around -5%) despite growing inflows. Eventually, the floodgates are opened and inflows really spiked, marking the bottom of BTC price. The SOL ETF may go through a similar cycle as the initial avoidance distance.”
Analysts added that “FOMC Timing will not help as many participants (especially institutions that buy through ETFs) are likely de-risking early in the meeting. We do not view this as a red flag; expected behavior for high-profile events like this.”
Related: 21Shares Files Hype ETF, Bitwise Solana ETF Saw ‘huge numbers’ on day 2
Current data shows sellers dominating Sol’s price action, with order highlighting support at $188 to $185 and resistance at $204 and $207.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.
