- VanEck files the first spot Solana (SOL) ETF application.
- 21Shares quickly follows with a similar ETF filing.
- BlackRock’s CEO hints at a forthcoming Solana ETF during a July 1 investor call.
Investors in the altcoin market have closely monitored recent filings for Solana (SOL) Exchange-Traded Funds (ETFs). While the news initially boosted Solana’s price, the overall market response has been less enthusiastic than expected.
VanEck became the first U.S. asset manager to file for a spot SOL ETF, followed closely by a similar filing from 21Shares. Additionally, BlackRock’s CEO recently hinted at the company’s plan to apply for a Solana ETF. These developments triggered a 6% surge in SOL’s price amid broad market sell-off fears due to the Mt. Gox repayments. However, the uptick was short-lived.
A detailed analysis by Kaiko of SOL’s cumulative volume delta (CVD) revealed a net positive CVD of $29 million over the last week. This surge was attributed to increased spot buying on Coinbase over the weekend, which catalyzed SOL’s positive market performance.
However, the initial excitement did not translate into sustained upward price action for SOL or the broader altcoin market. The report also compared SOL’s price performance to Ethereum (ETH), which has experienced similar events. It found that the ETH to SOL ratio sharply declined in March, indicating SOL outperformed ETH at that time. But after the approval of an ETH ETF in the U.S., the ratio reversed and has since remained relatively flat, despite the new SOL ETF filings.
Source: Kaiko
Additionally, the impact of the ETF news barely registered in the derivatives market. While SOL’s volume-weighted funding rate saw a slight increase on June 27, it quickly returned to neutral levels, suggesting a lack of sustained bullish demand. Open interest in SOL also remains 20% below its levels from early June.
Kaiko’s report attributes the lukewarm market reaction to prevailing skepticism about the approval chances of a spot SOL ETF. Market experts have also cited the relatively small size of the derivatives market and ongoing regulatory challenges with the SEC as reasons for the market’s pessimism.
Overall, the news of SOL ETF filings brought temporary excitement, but the general altcoin market remains cautious.
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