Solana Included in Grayscale’s New ETF Bid — Is Wall Street Finally Warming Up?
Solana has fallen by 2% in the past 24 hours, with its move to $125 coming after Grayscale filed to convert its Digital Large Cap Fund into an ETF.
In addition to Bitcoin, Ethereum, Cardano, and XRP, the Digital Large Cap Fund includes SOL, meaning that approval of the application could result in the first – or one of the first – spot-based SOL ETFs in the US.
However, this positive news hasn’t done that much to buoy the Solana price, which remains down by 13% in a week, 20% in a month, and 30% in a year.
But with Solana’s fundamentals as strong as ever, and deadlines for SOL ETFs approaching, the coming months could prove much more positive for the alt.
Solana Included in Grayscale’s New ETF Bid — Is Wall Street Finally Warming Up?
As detailed in its S-3 filing, Grayscale is proposing to convert a fund containing SOL, BTC, ETH, XRP, and ADA into an exchange-traded fund, which would list on NYSE’s Arca exchange.
The filing also reveals the fund’s weighting, which is currently at 73.52% Bitcoin, 16.16% Ethereum, 5.05% XRP, 3.83% SOL, and 1.44% ADA.
As such, Solana is not the major partner in the fund, but its existence – and its potential conversion into an ETF – underscores institutional demand for SOL.
And when you add the other Solana ETFs that are currently awaiting review, it highlights how the altcoin could experience a massive surge in institutional buying later in the year.
For now, its chart suggests that it remains somewhat unloved and undervalued, with its indicators continuing to sit in lower regions.
Its RSI, for instance, has been below 50 since the beginning of March, and is still struggling to break through this level.
Likewise, its 30-day average (orange) continues to drop even further below the 200-day (blue), another sign of overselling and of an impending rebound.
Other bearish signs include a negative funding rate and a relatively low trading volume, at $3.3 billion today (down from $15.5 billion only a month ago).
Based on this, it may be some time before Solana enjoys a proper recovery, with fears surrounding US tariffs serving to keep most markets (apart from the gold market) down today.
In the longer term, Solana’s future looks very bright, given its status as the second-biggest layer-one network in the crypto ecosystem (in terms of TVL).
It could return to $200 by June, while the approval of ETFs in the second half of the year could see it reach $300 by Q4.
Solana Gets Its Own Layer-Two Platform
Since SOL may remain weak for the next few weeks, many traders may like to diversify into newer, potentially more volatile coins in the meantime.
And some of the best new alts right now are currently holding their presales, which can help them gain lots of momentum before they list on exchanges.
One example doing just this is Solaxy (SOLX), which has now raised $28.8 million in its ICO.
Investors are bullish for Solaxy because of its strong fundamentals and market potential, with the project’s status as a layer-two for Solana giving it lots of utility.
As an L2, Solaxy will provide Solana users with faster transactions and lower fees, while also providing instant bridging between itself and its parent network.
Its team will add compatibility with additional chains over time, including Ethereum, something which could give it a very wide reach.
And given that SOLX will be necessary to pay transaction fees, the coin could attract huge demand.
Investors can join its sale by going to the Solaxy website, where SOLX is currently selling at $0.001682.
This price will rise again tomorrow, while it will experience a few more increases before the sale ends, so new buyers should act sooner rather than later.