According to Cointelegraph, Solana is witnessing increased mainstream adoption with the introduction of the Bitwise Solana Staking ETF. This development has fueled a significant recovery in the price of Solana's native token, SOL, which traded at $203 on Tuesday, marking a 14% increase from its recent low of $177 on October 22. The excitement surrounding the launch of the first Solana ETF in the United States is a key driver of this upward trend.
The Bitwise Solana Staking exchange-traded fund (ETF) is set to make its debut on the New York Stock Exchange under the ticker symbol BSOL. This ETF is notable for being the first U.S. spot Solana ETF with 100% direct exposure to SOL, incorporating built-in staking that offers approximately 7% annual yields from network rewards. Bloomberg ETF analyst Eric Balchunas confirmed the NYSE listing notices, noting that Grayscale's Solana Trust (GSOL) will convert to a spot ETF, providing another regulated avenue for exposure to SOL’s price and staking rewards. The approval process for crypto ETFs in U.S. markets has been delayed since the federal government shutdown on October 1.
Crypto analyst Bitcoinsensus highlighted the significance of this launch, stating that the Bitwise $BSOL ETF's approval by the SEC marks a major milestone for Solana and altcoin ETF adoption. The ETF is expected to attract substantial institutional inflows, similar to the REX-Osprey Solana Staking ETF, which debuted with over $12 million in first-day volume. JPMorgan predicts that a Solana ETF could draw between $3 billion to $6 billion in its first year, based on the adoption rates of Bitcoin and Ether ETFs.
The price action of SOL is exhibiting a bull flag pattern on the weekly time frame, suggesting a potential rise to $400 and beyond. A bull flag is a bullish continuation pattern that follows a significant rise, with a consolidation period at the higher price end of the range. A breakout above the flag’s upper trendline could trigger a parabolic price rise. The measured target for this pattern is $412, representing a 104% increase from the current level. Supporting this bullish outlook is the increase in the Relative Strength Index (RSI) value to 53, indicating a steady rise in upward momentum. Analyst BitBull also noted that SOL is maintaining its 3-year support trendline, with a weekly close above $280 potentially triggering a massive rally. As reported by Cointelegraph, the RSI climbing above the mid-point mark suggests that buyers are in control, which could help SOL break through $220 and pave the way for a rally to $260 and beyond.
Jixu
