SOL price surges after ETF announcement, but doubts remain about sustained rally

From Cointelegraph

June 30, 2025 7:15 PM:

Solana’s native token, SOL, surged 7% after announcing the first Solana ETF with staking capabilities. Despite initial excitement, doubts remain about institutional demand and sustained price rally. The ETF structure allows for faster launch but may not attract significant institutional interest, given competition and DApp sell-offs.

SOL’s price initially rose to $161 but settled at $157, a 4% gain from the previous day. The REX-Osprey SOL + Staking ETF offers tax efficiency but faces challenges in attracting institutional investors. Grayscale’s Solana Trust manages only $75 million in assets, indicating limited demand compared to other crypto trusts.

SOL faces pressure from staking unlocks and DApp sell-offs, hindering potential price gains. Despite the ETF news, SOL’s performance mirrors competitors ETH and BNB. Traders’ positioning, reflected in SOL’s futures funding rate, remains below the 10% bullish threshold. Network activity and revenue show no signs of recovery, dampening SOL’s outlook.

Competition from other platforms like Ethereum and lack of demand for Solana Trust instruments may limit SOL’s rally to $200 post-ETF launch. Robinhood’s choice of Ethereum for tokenized stock trading and Coinbase’s partnership with Shopify on Ethereum-based payments further diminish Solana’s appeal. Institutional interest in SOL remains uncertain amid increasing competition.

Read more at Cointelegraph: SOL Hits $161 After ETF News, Is It Just Hype?