- Major cryptocurrency asset manager gets the ball rolling on Solana ETF.
- SOL would be the second altcoin in the ETF market if approved.
- Solana’s DeFi flourishes to $6.26B TVL, rebounding to early 2022 levels.
Australian crypto asset manager Canary Capital stunned the cryptosphere with a filing for a Solana (SOL) based exchange-traded fund (ETF) product. The S-1 Form registration landed on the Securities and Exchange Commission’s (SEC) table in Washington on October 30, 2024.
Race for First Solana ETF Accelerates
With this move, Canary Capital joins the race between other heavyweight digital asset management companies like VanEck and 21 Shares, which filed for similar Solana ETF products in late June 2024. This comes as Solana continues to be among the strongest performers in the altcoin section, yielding 377% yearly.
Meanwhile, this marks the third installment of crypto ETF applications from Canary Capital, as the company is also going for a Litecoin ETF and XRP ETF, all filled for in October 2024. The Solana ETF would assign a traditional brokerage account to the investors, tracking Solana’s price via the Chicago Mercantile Exchange CF Solana index.
“Despite the hyper competitive L1 and EVM landscape, Solana has emerged as a battle-tested frontrunner for decentralized applications,” reads Canary Capital’s statement, highlighting the SOL DeFi ecosystem as a great example of a strong and sustained blockchain. The application also states that Solana maintains a commanding lead over its peers with a “low fee environment”.
SOL on Track to Restore $250?
The #5 ranked flagship altcoin Solana has shined immensely in 2024, breaking multi-year records in March, when SOL scorched past $200 twice. Similar attempts to conquer the slightly lower $180 resistance barrier were made in July, while the 12% growth during “Uptober” has led to the altcoin retesting these levels.
According to technical analysis by Bit Amberly, Solana’s latest price movement is forming an ascending triangle pattern on the two-day chart. Currently trading at $174.59, this is still $20 below the $195 resistance area, which is required to break out of this technical construction.
In the case of a SOL price breakout, the $250 zone is drawn as “the moon” in the crypto trader’s analysis, while the current all-time peak is $259.96. Scored over three years ago, Solana encircled a smaller market capitalization than now, testifying the exponential growth.
With a market cap of $82,138,716,008, Solana’s Layer-1 chain is home to several blue-chip meme coins and highly popular decentralized exchanges (DEXs) like Jupiter, Meteora, and Orca.
Aside from crypto aficionados finding utility in Solana, the chain remains a sweetheart of institutional investors, netting $10.8 million in inflows last week. Assets under management (AUM) are only trailing behind Bitcoin (BTC) and Ethereum (ETH), now sitting at $1.6 billion.
On the Flipside
- The application to the SEC left out some crucial details, like the Solana ETF product’s ticker symbol.
Why This Matters
Digital asset exchange-traded funds open abundant opportunities to traditional finance investors, as the regulatory oversight eliminates risks tied to owning the crypto asset directly.
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