Key points:
SOL remains below $200 despite impressive daily trading volumes from the Solana ETF.
Analysts suggest SOL’s price movements may reflect ETH’s underperformance following the launch of Ethereum spot ETFs.
Throughout September, traders and analysts expressed strong optimism about SOL (SOL), noting the U.S. Securities and Exchange Commission’s Oct. 10 deadline for some spot ETF approvals and the remarkable performance of BTC and ETH ETFs as reasons for positioning ahead of the event.
During this time, data indicated that various investor groups were increasing their SOL futures and spot holdings. However, the U.S. government shutdown put the deadline in question, and a significant liquidation event on Oct. 10 caused the altcoin’s price to drop to as low as $147 on certain crypto exchanges.
Currently, the market is seeing two new SOL ETFs debut this week. Grayscale Investments launched their staking-enabled Solana spot ETF (GSOL) on Wednesday, while the Bitwise Solana Staking ETF (BSOL) went live on Tuesday. Cointelegraph reported that BSOL launched with $222 million in assets and concluded its second trading day with $72 million in trading volume.
Before the U.S. government shutdown and the sell-off on Oct. 10, analysts anticipated that a successful Solana ETF approval and launch would trigger a SOL price surge into the $300 to $600 range; however, the altcoin is currently priced below $200.
When inquired about the current situation and whether the SOL trade has turned into a sell-the-news scenario, Hyblock analysts remarked:
“BTC’s ETF launch and BTC price shared a similar dynamic at launch. BTC price remained flat and declined (around -5%) despite rising inflows. Ultimately, inflows surged, marking the bottom for BTC prices. The SOL ETF may be experiencing a comparable cycle as initial excitement wanes.”
The analysts further noted that this week’s “FOMC timing is not advantageous, as many participants (particularly institutions that would invest via ETF) are likely reducing risk ahead of the meeting. We do not consider it a red flag; it’s typical behavior for high-profile events like this.”
Related: 21Shares files HYPE ETF, Bitwise Solana ETF sees ‘huge number’ on day 2
Current data reveals that sellers are dominating SOL’s price movements, with the order book indicating support at $188 to $185 and resistance at $204 and $207.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
