Solana (SOL) Price: Jumps 6% as Grayscale Files for Spot Solana ETF on NYSE

TLDR

• Grayscale Investments has filed to convert its $134 million Solana Trust into a spot ETF on NYSE Arca
• Solana’s price increased 6% to $237 following the ETF filing news
• Multiple issuers including VanEck, 21Shares, and Canary Capital have submitted Solana ETF applications
• SOL recently hit an all-time high of $260 before experiencing a 12% decline to $215
• Technical indicators show SOL trading above key moving averages with resistance at $240-250

Grayscale Investments, a major digital asset management firm, has filed an application to convert its existing $134 million Solana Trust into a spot ETF on NYSE Arca. The move comes as the Solana token (SOL) experiences a price recovery, rising 6% to $237 in the past 24 hours.

The filing represents another step in the growing institutional interest in Solana, as multiple investment firms seek to create regulated investment products based on the cryptocurrency. VanEck, 21Shares, and Canary Capital have also submitted applications for Solana-based ETFs on the Cboe exchange.

Solana’s recent price movement shows a pattern of volatility, having reached an all-time high above $260 before experiencing a 12% decline that brought the price down to $215. The downturn coincided with market rotations that saw XRP temporarily overtake Solana in market capitalization rankings.

The proposed ETF would track Solana’s price directly, following a structure similar to Grayscale’s existing Bitcoin and Ethereum trusts. The firm’s current Solana Trust manages $134 million in assets, highlighting the existing institutional demand for SOL exposure.

Technical analysis indicates that Solana has formed a support base above the $220 level, with the price now trading above the 100-hourly simple moving average. A bearish trend line with resistance at $232 has been broken, suggesting potential for further upward movement.

Solana Price on CoinGecko

The token faces immediate resistance near the $240 level, corresponding to the 76.4% Fibonacci retracement level of the recent downward move. Beyond this, the $246 and $250 levels represent key resistance points that could influence future price action.

The appointment of pro-crypto advocate Paul Atkins as SEC chair has created optimism regarding the regulatory environment for digital asset products. This development may influence the timeline and likelihood of approval for Solana ETF applications.

Market data shows sustained trading activity in the Solana ecosystem, with the token maintaining its position among the top cryptocurrencies by market capitalization despite recent fluctuations.

The hourly MACD indicator for SOL/USD shows momentum building in the bullish zone, while the Relative Strength Index remains above the 50 level, suggesting healthy market conditions.

Support levels have established themselves at $230 and $220, providing potential price floors should any downward pressure emerge. A break below these levels could see the price test the $215 zone.

On the upside, clearing the $250 resistance level could open the path toward the $265 and $280 price targets, according to technical analysis of recent price patterns.

The SEC has begun reviewing Solana ETF registration forms from various issuers, marking a crucial phase in the potential approval process for these investment products.

Trading volumes across major exchanges indicate sustained interest in Solana, with market participants responding positively to the ETF filing news.

The proposed ETF would provide traditional investors with a regulated avenue to gain exposure to Solana’s price movements without directly holding the cryptocurrency.

Current market data from CoinGecko confirms the price recovery, showing steady buying pressure following last week’s correction.

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