Solana
Solana (SOL) Skyrockets 1,966% in Fund Flows: Is Solana ETF a Possibility?
Gamza Khanzadaev
Solana (SOL) increased its fund inflows by 1,966%, sparking discussions about the potential of Solana ET
Read U.TODAY on
Google News
As we learned, Solana (SOL) experienced an unprecedented 1,966% increase in fund inflows over the past week, firmly establishing itself as a standout leader in cryptocurrency-focused alternative investment products over the past week.
According to the latest report from Coin Shares, a substantial $5.9 million was spent on SOL-related products in this short time frame. This surge not only reaffirms SOL’s dominance, but also marks a nearly twenty-fold increase in inbound flows to Solana FTEs, totaling an impressive $17 million year-to-date.
In contrast to this notable uptrend in SOL, the broader market landscape paints a different picture. While investment products for digital assets saw a commendable inflow of $130 million, ETP volumes saw a significant decline from $17 billion in April to $8 billion.
Source: Coin Shares
This trend suggests a decreasing participation of ETP investors in the cryptocurrency ecosystem, which now represents only 22% of the total volume of reputable global exchanges.
When will the Solana ETF come?
Amid growing interest from traditional investors in SOL, speculation is arising regarding the feasibility of a Solana ETF. However, the potential of such an ETF is closely linked to the fate of Ethereum ETF. Facing regulatory hurdles, the path to a Solana ETF appears equally difficult.
In particular, regulatory ambiguity surrounds Ethereum ETF status, with the SEC’s classification of SOL as an unregistered security in last year’s case against the Kraken exchange adding to the uncertainty.
While investors await clarity on the ETF front, the prospect of a Solana ETF remains speculative, dependent on regulatory developments and the resolution of Ethereum’s ETF dilemma.
About the Author
Gamza Khanzadaev
Financial analyst, trader and crypto enthusiast.
Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master’s program in banking and asset management.
He wants to participate in covering economic and financial technology topics, as well as making more people aware of cryptocurrencies and blockchain.