Solana ETFs Could be Here Soon: What This Means for SOL Price?

Key Takeaways

• Solana ETF anticipation is sparking investor interest.
• The SEC will make a decision on Solana ETFs by March 5, 2025.
• SOL shows bullish potential despite overbought conditions.

The prospect of Solana ETFs is gaining traction, with Cboe as the latest to file for approval to list these funds. The anticipation surrounding Solana ETFs has already affected SOL’s price. Traders seem to be putting the recent surge down to strengthen fundamentals and grow market optimism.

The introduction of Solana ETFs could usher in increased liquidity and broader acceptance of Solana within the financial ecosystem. As the US Securities and Exchange Commission (SEC) decides whether or not to approve them, the potential launch of Solana ETFs could be a pivotal moment, driving SOL prices higher and shaping the future of the blockchain.

Solana ETFs Coming Next?

Ethereum (ETH) Spot ETFs are set to launch on July 23. Meanwhile, investors are already speculating about whether Solana ETFs will follow. ETF Store President Nate Geraci says it is possible that an ETF combining Bitcoin (BTC), ETH, and SOL could launch.

Geraci’s proven track record in predicting crypto ETF trends lends credibility to his forecast. Solana (SOL) has previously faced enforcement actions for being classified as an unregistered security. 

Exchange operator Cboe Global Markets (CBOE.Z) filed a request with the SEC on July 8 to list exchange-traded funds (ETFs) tied to the cryptocurrency Solana. 

The agency has 240 calendar days to approve or deny Cboe’s 19b-4 application to list the ETFs from VanEck and digital asset manager 21Shares. This means the SEC has until March 5, 2025, to announce its decision. 

SOL Price Analysis 

On March 18, Solana peaked at $210 but sharply declined to $120 by May 1, marking a 43% drop. However, by May 21, the price rebounded to nearly $190, breaking through a resistance level that had previously served as support.

Despite this recovery, SOL soon fell back below this critical level. The downturn from May 1 showed three distinct waves, indicating a possible prolonged bearish trend. The fall below $160 confirmed the surge to May 21 was a three-wave corrective pattern. This, therefore, suggested the subsequent decline might be part of a larger bearish phase. Alternatively, it could be part of a complex three-wave correction that started on March 18.

As the price broke its $160 resistance, a new uptrend started on July 5, marking the correction as an ABC pattern. With the price climbing and trading at $over $170, there could be more upside in the near term.

However, the four-hour chart’s RSI is overbought, indicating a possible retracement to the $160 level for a support retest before further upward movement. Nevertheless, the overall outlook remains bullish.