Solana ETF expected to be approved in 2 weeks

Solana could soon witness the advent of its first US spot Exchange-Traded Funds (ETFs) integrating staking features, as predicted by ETF analyst Nate Geraci, who anticipates approval within a fortnight by mid-October. This could signify a significant moment for the cryptocurrency, marking its entry into the institutional investment realm.

Noteworthy asset management companies such as Franklin Templeton, Fidelity, CoinShares, Bitwise, Grayscale, VanEck, and Canary Capital have submitted revised S-1 filings to the US Securities and Exchange Commission (SEC) recently. This move follows the successful debut of the first Solana staking ETF on the Cboe BZX Exchange, which saw substantial trading volume of $33 million and inflows amounting to $12 million on its launch day.

The inclusion of staking provisions in the ETF filings has garnered attention, with Bitwise’s Chief Investment Officer Hunter Horsley reporting a significant $60 million inflow in just five sessions for its European Solana staking ETP. Solana has been touted by Pantera Capital as the next cryptocurrency deserving of institutional investment, citing its comparably underweight status in relation to Bitcoin and Ether.

The incorporation of staking mechanisms in ETFs is deemed to have a positive impact on yields and influence investor behavior, with potential implications extending to future Ethereum ETFs as well. Analysts opine that ETFs adopting staking could incentivize greater participation and redefine investment strategies.

As per the price action, Solana (SOL) is currently trading around $201, witnessing a decline of nearly 15% over the previous week. Technical analysis indicates that SOL is consolidating within a rising wedge pattern, with resistance at $236 and support at $180. A breakout above $236 could set the stage for a push towards $300–$320, while breaching the $180 support level risks a further decline towards the $124–$130 support zone.

Key indicators like RSI around 54 indicate neutral market conditions without extreme buying or selling pressures, implying potential price volatility. The MACD, showing signs of flattening, points towards a deceleration in momentum, while spikes in volume hint at traders positioning themselves strategically ahead of ETF-related events.

In light of Geraci’s projection for approval by mid-October, if realized, it could serve as a pivotal moment for Solana, potentially propelling SOL into the spotlight as the next crypto asset to witness a surge in value.