Amid the second wave of crypto-based Exchange-Traded Funds (ETFs), Solana (SOL)-based investment products have been leading the charge, fueled by strong demand despite the recent market volatility. As a new group of investment products based on the altcoin hits the market and SOLโs price starts to recover, some suggest that a rebound could be underway.
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Solana ETFs Take Over
The second wave of Solana ETFs has arrived in the market after the successful launch of SOL-based investment products. On Monday, VanEck debuted its Solana ETF (VSOL) on Nasdaq, becoming the third investment product based on the altcoin to launch over the past month.
According to the announcement, the firm is waiving its 0.30% fee on the first $1 billion in assets under management (AUM) or until February 17, 2026. Meanwhile, its third-party staking provider will also waive its fee for staking services under the same conditions.
Adding to the momentum, Fidelity and Canary Capital launched their FSOL and SOLC ETFs on Tuesday, after recently filing 8-A forms with the Securities and Exchange Commission (SEC). Senior Bloomberg analyst Eric Balchunas noted that Fidelity is โeasily the biggest asset manager in this category with BlackRock sitting out,โ adding that it is โGame onโ with the other launches.
Meanwhile, Nate Geraci also highlighted the new launch, but expressed surprise that BlackRock is โsitting this one outโ as many anticipate a successful performance. Notably, Bitwise and Grayscale debuted their BSOL and GSOL ETFs at the end of October, registering a record-breaking performance since their launch.
Farside Invest data shows that SOL-based investment products have recorded over $390 million in inflows, with 15 consecutive trading days of positive net flows, signaling strong institutional demand for the products.
In a Tuesday X post, Bitwiseโs CEO, Hunter Horsley, noted BSOLโs positive performance despite the market correction, affirming that โprices are in the eye of the beholder.โ โETF investors continue to buy the dip. Grateful for the trust in Bitwise to steward investor assets,โ he added.
Institutional Demand To Fuel SOLโs Rebound?
Amid the Tuesday launches, SOLโs price bounced 8.4% from its five-month low of $128, recorded on Monday. The cryptocurrency has declined 12% over the past month, losing crucial levels during the market correction.
However, Bybit recently suggested that the newly launched investment products could reshape โits price trajectory and market structure for years to come.โ In a recent report, the crypto exchangeโs analysts noted that the altcoin joined Bitcoin (BTC) and Ethereum (ETH) as one of the few digital assets with regulated brokerage access in the US.
This โrepresents a structural shift in how SOL is accessed, traded and perceived,โ significantly expanding SOLโs investor base and confidence. โIf historical patterns hold, Solana could be on the cusp of a multi-quarter rally that redefines its position in the crypto hierarchy,โ the exchange affirmed.
Analyst Ted Pillows pointed out SOLโs price action, calling it โone of the worst-performing large caps recently.โ However, he argued that, because of this, most of its downside liquidity has already been taken out, with โdecent liquidity clusters around the $170-$200 level.โ
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To analysts, if the market starts to recover and stabilizes, Solana could rally 20%-40% to retest this area. Meanwhile, Daan Crypto Trades affirmed that SOL is โputting in quite the reversal relative to its BTC pair,โ as the cryptocurrency has broken out of a three-week downtrend against Bitcoin after some failed attempts.
As of this writing, Solana is trading at $141, a 25.3% decline in the monthly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
