Despite the highly anticipated launch of two new Solana (SOL) Exchange-Traded Funds (ETFs) this week, the price of SOL has struggled to rally, currently trading below $200. This follows a period where traders were highly bullish on SOL, anticipating a significant price surge on the back of potential ETF approvals.
Key Developments and Market Reaction:
- Initial Bullish Sentiment: Ahead of an expected October 10 SEC deadline for spot ETF approvals, traders positioned aggressively in SOL futures and spot holdings, betting that successful ETF launches would drive the price into the $300 to $600 range.
- Setbacks:This bullish thesis was derailed by two main events:
- The US government shutdown which threw the ETF deadline into limbo.
- A sharp crypto market liquidation event on October 10 that briefly dropped SOL's price as low as $147.
- ETF Launches:Two new Solana ETFs have launched this week:
- Bitwise Solana Staking ETF (BSOL): Launched on Tuesday with $222 million in assets and saw strong trading volume on its second day.
- Grayscale Investments' staking-enabled Solana spot ETF (GSOL): Launched on Wednesday.
- Price Disappointment: Despite the actual launch of the ETFs, the price of SOL has not seen the predicted breakout and is currently under $200.
Analyst Perspective:
Analysts from Hyblock suggest that the muted price action may not be a "sell-the-news" outcome, but rather a pattern similar to Bitcoin’s (BTC) initial ETF launch.
- BTC Comparison: BTC's price also trended flat or down slightly (-5%) immediately following its ETF launch, despite growing inflows. The price bottomed out only when "inflows really spiked."
- External Factors: Analysts also noted that the timing of the FOMC meeting is likely causing institutions and other participants to de-risk, which is an "expected behavior for high-profile events such as these" and is currently hindering the rally.
- Current Metrics: Orderbook data shows sellers currently dominating SOL's price action, with key support levels identified at $185 to $188 and resistance at $204 and $207.
The analysts conclude that the current lull is expected behavior, suggesting that sustained inflows into the new ETFs could eventually trigger the anticipated price rally, mirroring the trajectory of the initial Bitcoin ETF market.
October 2025, Cryptoniteuae