{"id":168312,"date":"2024-07-02T14:01:17","date_gmt":"2024-07-02T14:01:17","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=168312"},"modified":"2024-07-02T14:50:35","modified_gmt":"2024-07-02T14:50:35","slug":"solana-etfs-news-falls-flat-on-market-research-reveals-insights","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/solana-etfs-news-falls-flat-on-market-research-reveals-insights\/","title":{"rendered":"&#8216;Solana (SOL) ETF News Falls Flat on Market&#8217;, Research Says"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">Brief Excitement<\/span><\/strong><span data-preserver-spaces=\"true\">: The announcement of Solana ETFs initially caused a 6% price increase, but the excitement was short-lived, and market dynamics returned to normal, indicating skepticism and regulatory hurdles.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Comparative Analysis<\/span><\/strong><span data-preserver-spaces=\"true\">: Solana\u2019s ETF impact was less significant compared to Ethereum\u2019s, with a temporary boost in volume-weighted funding ratio and stable open interest, reflecting limited bullish sentiment.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Growth Amidst Challenges<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">: Despite regulatory challenges and market skepticism, Solana\u2019s DeFi ecosystem has grown, with the TVL rising significantly and continuous innovation within the ecosystem.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">Crypto data platform Kaiko recently <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/research.kaiko.com\/insights\/sol-etf-applications-fall-flat\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">analyzed <\/span><\/a><span data-preserver-spaces=\"true\">the impact of spot <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/solana\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Solana <\/span><\/a><span data-preserver-spaces=\"true\">ETFs<\/span><\/strong><span data-preserver-spaces=\"true\"> (exchange-traded funds) <\/span><strong><span data-preserver-spaces=\"true\">on the market.<\/span><\/strong><span data-preserver-spaces=\"true\"> Despite initial excitement and a brief price spike, Solana\u2019s market dynamics quickly reverted to their prior state, highlighting skepticism and regulatory challenges.<\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">VanEck submitted the initial application for a Solana ETF with the SEC on June 27<\/span><\/strong><span data-preserver-spaces=\"true\">, followed by a similar filing from 21Shares on June 28. The market responded with excitement, leading to a 6% increase in Solana&#8217;s price.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">However, <\/span><strong><span data-preserver-spaces=\"true\">Kaiko reveals that the impact was short-lived, and market dynamics soon normalized.<\/span><\/strong><span data-preserver-spaces=\"true\"> Solana\u2019s cumulative volume delta (CVD) data, which measures net buying and selling, showed a net positive CVD of $29 million over the past week. <\/span><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">This increase was primarily driven by spot buying on Coinbase. <\/span><\/strong><span data-preserver-spaces=\"true\">Interestingly, investor expectations for Solana ETFs were not as high as for other cryptocurrencies like <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/crypto-economy.com\/what-is-ethereum\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Ethereum <\/span><\/a><span data-preserver-spaces=\"true\">(ETH). Despite being dubbed an \u2018Ethereum killer,\u2019 Solana struggled to maintain its momentum.<\/span><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">Comparing Solana to Ethereum, the latter\u2019s spot ETF received partial approval on May 23<\/span><\/strong><span data-preserver-spaces=\"true\">, resulting in a more sustained upward trend in its price. Kaiko also noted that the impact of Solana ETF news on the derivatives market was limited. <\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite a temporary increase in the volume-weighted funding ratio of the SOL token on June 27, it promptly reverted back to normal levels. Open interest stayed almost the same and was 20% lower compared to earlier in June, suggesting a lack of continuous bullish interest.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Decentralization vs. Regulation: A Solana ETfs Dilemma<\/span><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-168313\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/07\/Solana.jpg\" alt=\"Solana ETFs News Falls Flat on Market: Research Reveals Insights\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/07\/Solana.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/07\/Solana-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/07\/Solana-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The market may not have reacted strongly due to doubts about the likelihood of a Solana ETF being approved. <\/span><strong><span data-preserver-spaces=\"true\">Unlike Bitcoin and Ethereum, Solana lacks extensive data in the derivatives market<\/span><\/strong><span data-preserver-spaces=\"true\">, which makes it harder to persuade regulators of its price stability and resistance to manipulation.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Kaiko pointed out the regulatory obstacles, while experts in the field are expressing a careful perspective. <\/span><strong><span data-preserver-spaces=\"true\">According to ETF analyst James Seyffart<\/span><\/strong><span data-preserver-spaces=\"true\"> from Bloomberg Intelligence, <\/span><strong><span data-preserver-spaces=\"true\">Solana&#8217;s classification as a security might pose a major challenge in obtaining approval.<\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite these challenges, positive developments within the Solana ecosystem persist. <\/span><strong><span data-preserver-spaces=\"true\">Data from the crypto exchange Bitget shows that Solana\u2019s<\/span><\/strong><span data-preserver-spaces=\"true\"> decentralized finance (DeFi) <\/span><strong><span data-preserver-spaces=\"true\">ecosystem has experienced rapid growth.<\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><strong><span data-preserver-spaces=\"true\">The total value locked (TVL) in Solana DeFi rose from approximately $1.3 billion<\/span><\/strong><span data-preserver-spaces=\"true\"> at the beginning of 2024 <\/span><strong><span data-preserver-spaces=\"true\">to about $4.5 billion by the end of June. <\/span><\/strong><span data-preserver-spaces=\"true\">The Solana Foundation continues to innovate, expanding its ecosystem to include Solana mobile phones, SDKs, and the newly launched Solana Blinks.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite the uncertain regulatory conditions, Solana&#8217;s ongoing growth and innovation are setting the stage for potential future success. As the environment changes, Solana&#8217;s opportunities could get better.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR Brief Excitement: The announcement of Solana ETFs initially caused a 6% price increase, but the excitement was short-lived, and market dynamics returned to normal, indicating skepticism and regulatory hurdles. Comparative Analysis: Solana\u2019s ETF impact was less significant compared to Ethereum\u2019s, with a temporary boost in volume-weighted funding ratio and stable open interest, reflecting limited &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"&#8216;Solana (SOL) ETF News Falls Flat on Market&#8217;, Research Says\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/solana-etfs-news-falls-flat-on-market-research-reveals-insights\/#more-168312\" aria-label=\"More on &#8216;Solana (SOL) ETF News Falls Flat on Market&#8217;, Research Says\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":168314,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[114,74],"tags":[5536,4924,5416,5348],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/168312"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=168312"}],"version-history":[{"count":2,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/168312\/revisions"}],"predecessor-version":[{"id":168318,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/168312\/revisions\/168318"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/168314"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=168312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=168312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=168312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}