Solana ETPs Record $706 Million in Weekly Inflows as Market Awaits SEC ETF Approval Decision
- Solana ETPs saw record inflows with over $700 million added in one week boosting total assets above $5 billion.
- The SEC will decide on 9 spot Solana ETF filings this week as institutional interest continues to grow.
- ETF issuers want to include staking in funds which could change how crypto assets are used in investments.
Solana-linked exchange-traded products (ETPs) have seen record-breaking weekly inflows. According to CoinShares, $706 million entered Solana ETPs last week alone. This pushed total assets under management above $5.1 billion. This is more than twice the former high of $311 million in July.
This sharp rise signals growing interest from institutional investors. The only Solana ETP currently listed in the U.S., the REX Shares Solana Staking ETF (SSK), holds over $406 million. The increase reflects stronger market confidence in Solana-related assets.
Spot ETF Approval Deadline Approaches
The U.S. Securities and Exchange Commission (SEC) is under critical deadlines during this week. Nine spot Solana ETF applications await decisions. Firms like VanEck, Fidelity, Grayscale, and Franklin Templeton have filings under final review. Bitwise and 21Shares expect final responses by October 16.
A number of applications have added staking functionality to their proposals, such as Bitwise and Grayscale. This would enable funds to earn rewards whilst in possession of SOL tokens. This change is in line with the macro market shifts and the investor focus on staking-based yields.
Push for Liquid Staking Inclusion in ETFs
Issuers recently submitted a joint letter to the SEC. The proposal urged the inclusion of liquid staking tokens (LSTs) in ETF structures. The letter argued that using Solana as a test case could set a framework for future blockchain-based financial products.
The proposal highlights how staking rewards could enhance fund returns. If accepted, the move would represent a shift in how crypto-backed ETFs operate. It could also provide a model for integrating proof-of-stake assets into mainstream investment tools.
Market Optimism Grows as Prices Rebound
The native token of Solana, SOL, has just bounced back after hitting a low in September. It is currently trading at approximately $230, and this is 20% higher than it was previously at $191. Technical analysis shows two bullish flag patterns forming. The smaller pattern targets a move to $290, while the larger one suggests a rise to $345.
Solana ETFs based on futures already exceeded inflows of more than a billion dollars. This is an indication of increasing investor interest in crypto exposure in regulated products.
Analysts estimate a high chance of SEC approval this week. If granted, the decision could attract more institutional capital. A green light may also drive further price momentum for SOL.
Grayscale’s introduction of staking to its Solana product adds to investor enthusiasm. The upcoming deadline marks a critical moment for Solana’s potential entry into U.S. spot ETF markets.
