Spot Solana
ETF Fails
to Sustain Market Impact, According
to Kaiko Analysts
Crypto data platform Kaiko recently reported that the introduction of spot
Solana exchange-traded funds (ETFs) did not significantly impact the market.
Despite initial enthusiasm and a brief price spike, Solana s ( SOL )
market dynamics quickly returned to their prior state, reflecting skepticism
and regulatory challenges.
Solana s Brief Surge: Investor Hopes Fade Quickly Despite ETF News
On June 27, VanEck filed for the first spot Solana ETF with the US Securities
and Exchange Commission (SEC). A similar filing from 21Shares followed on June
28.
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These filings initially generated excitement, causing Solana s price to
spike by 6%. However, Kaiko reveals the impact was fleeting, and market
dynamics soon returned to their previous state.
Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?
“The filings provided a temporary boost to market sentiment, which had been
dampened by fears of a broad selloff due to Mt. Gox repayments,” the report
reads.
This temporary shift was reflected in Solana s cumulative volume delta
(CVD) data, which measures cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта net buying and selling.
According to Kaiko, Solana recorded a net positive CVD of $29 million over the
past week, primarily driven by increased spot buying on Coinbase. Solana CVD.
Source: Kaiko
Furthermore, Kaiko s analysis suggests that investor expectations for
spot Solana ETF were not as high as for other cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта like Ethereum
(ETH• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum). Solana, often called an Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum killer, struggled to
maintain its momentum.
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A comparative analysis with Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum highlighted this discrepancy. After spot
Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum ETF received partial approval on May 23, its price showed a more
sustained upward trend than Solana.
Kaiko also noted that the effect of the Solana ETF news on the derivatives
market was limited. While there was a brief spike in the volume-weighted
funding ratio of the SOL token on June 27, it soon returned to neutral levels.
Open interest remained virtually unchanged and was 20% lower than its early
June levels, underscoring the lack of sustained bullish demand.
Solana Ecosystem Continues to Expand Amid Regulatory Doubts
One possible explanation for the muted market reaction could be skepticism
regarding the approval odds of a spot Solana ETF . Unlike Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and
Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum, Solana has less data accumulated in the derivatives market, making
it challenging to convince regulators about its price stability and resistance
to manipulation.
Kaiko cited these regulatory hurdles as a significant factor. Industry experts
share Kaiko s cautious outlook. ETF analyst James Seyffart from
Bloomberg Intelligence noted that Solana s status as a security could
significantly hinder the approval process.
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Solana s classification as a security presents a very rocky road
for ETF approval, Seyffart remarked.
Despite the challenges, there are positive developments within the Solana
ecosystem. Data from the crypto exchange Bitget report shows that
Solana s decentralized finance ( DeFi ) ecosystem has experienced rapid
growth, with its total value locked (TVL) rising from approximately $1.3
billion at the beginning of 2024 to about $4.5 billion at the end of June.
The Solana Foundation also continues to innovate. It recently expanded its
ecosystem to include Solana mobile phones, SDKs, and the newly launched Solana
Blinks .
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“These products lay the foundation for Solana s mass adoption, represent
Solana s adaptation to mobile internet development, and are key to the
constant increase in active addresses on the chain,” Ryan Lee, Chief Analyst
at Bitget Research, told BeInCrypto.
Read more: What Is Solana (SOL)?
Nonetheless, the Solana ecosystem s continuous growth and innovation lay
the groundwork for potential future success. Additionally, as regulatory
conditions change, Solana s prospects may improve.
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