- Monday’s crash wiped out $1.5 billion; Ether fell 9%, Bitcoin dropped too.
- Solana is set to benefit from ETFs and treasury accumulation.
- Price wise, Solana is also holding crucial support at $190–$200.
Monday’s crash wiped out over $1.5 billion in leveraged trades, with Ether falling 9% and Bitcoin also dipping before recovering some losses. By Thursday, Ethereum traded near $4,000, while Bitcoin hovered around $111,000.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, said that crypto markets show how quickly prices can react. Last weekend, cascading liquidations drove sharp declines, even though underlying fundamentals, including government debt levels and the financial infrastructure, remained unchanged.
Related: Solana DAT DeFi Development Announces Up to $100 Million Share Buyback
ETFs and Institutional Demand Rising
Hougan identified two developments driving crypto adoption. First, the SEC has eased listing standards, which means spot ETFs will not be limited to Bitcoin and Ethereum much longer. A dozen more assets could be approved in the months ahead, and within half a year he believes the market could see ETFs for as many as 25 token assets.
Second, major financial institutions are beginning to approve spot Bitcoin ETFs. Companies like Wells Fargo, Morgan Stanley, and Merrill Lynch are preparing for this next wave. The combination of ETFs and digital asset treasury strategies could bring massive investment capital into crypto.
To frame the scale, he pointed to estimates from the World Bank; institutional and professional investors manage about $100 trillion globally. Even a 5% allocation to crypto would inject $5 trillion into a market that still sits below $4 trillion today.
SOL Treasury Base Close to $4B Ahead of Q4
Hougan described Q4 as a period that could prove decisive for Solana (SOL), especially. In his view, the setup comes from three strands pulling together; the launch of spot Solana ETFs, the continued accumulation by digital asset treasuries, and the rising interest in tokenization and stablecoin projects that run on the network.
The numbers make the argument tangible. As of September, 17 Solana treasury firms had already taken in more than 3% of the token’s supply, and combined holdings across Solana treasuries are now close to $4 billion, according to the Strategic Solana Reserve. That concentration of capital signals a degree of institutional conviction that few other networks have achieved at this stage.
Solana’s ETF channel has also kept expanding. A Solana ETF launched in July by Rex Shares and Osprey Funds has already drawn nearly $300 million in assets. Broader spot Solana ETFs are expected to face their SEC decision around October 10, a date traders are treating as a potential catalyst for inflows.
Solana Price Levels to Watch
Technically, Solana recently closed below the $215–$216 resistance zone, testing support around $190–$200.
Holding this support is crucial for maintaining the broader bullish trend. Resistance levels to watch are $230 and $250.
Related: $1.7B Liquidations Hit, Yet SOL Reclaims $210 on Treasury Accumulation
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
