Can Solana Price Recover After This Week’s Decline?
The launch of VanEck’s new Solana ETF on Nasdaq has provided institutions with further access to the Solana market, but the token’s price has fallen sharply, raising concerns about its potential recovery. Despite the introduction of this regulated investment product, Solana’s price has dropped significantly, well below its previous month’s level. At the time of writing, SOL was trading at $136, down about 18% from last week.
The VanEck Solana ETF, which opened on November 17th with a seed basket purchased in late October, offers a uniform cost structure, with the manager waiving the sponsorship fee for an initial portion of the assets for a limited period. The fund also plans to stake a portion of the holdings through third-party validators, with all staking rewards accruing to the fund. This move is expected to increase early net returns, as the first betting operator has agreed to waive its fee during the waiver period.
Regulated Options for Investors
This is the second Solana (SOL) spot ETF to hit the US market, following Grayscale’s Solana Trust ETF, which was launched in October. Grayscale’s fund saw strong inflows in its first few days and quickly established a benchmark for Solana-linked products. Grayscale charges a management fee but has recently reduced its staking fee until the fund reaches a preset threshold, passing on most of the staking income to investors. The early performance of Grayscale’s fund reflects strong demand for regulated exposure to Solana.
The launch of these ETFs provides investors with more options for gaining exposure to the Solana market, which is currently experiencing a volatile phase. Analysts point out that a nearby support band is critical, and a loss of this level could move the market towards lower areas. A recovery above a higher price threshold would indicate weakening bearish momentum.
Expert Analysis and Predictions
Despite the correction, analysts expect US Solana ETFs to gain interest over time, with some early forecasts suggesting significant combined inflows in the funds’ first year. Whether these predictions are correct will depend heavily on the price development of Solana. A return to key support and a period of stability would help sustain demand. For now, the launch of VanEck’s ETF represents another regulated entry point for institutions.
Analysts are closely watching the Solana price chart, which shows the token’s sharp decline. 
Solana price chart | Source: crypto.news
In conclusion, while the launch of VanEck’s Solana ETF provides a regulated avenue for investors, the token’s price recovery remains uncertain. For the latest updates and analysis on Solana and other cryptocurrencies, visit https://crypto.news/solana-price-dips-despite-new-etf-launch/
