Solana Jumps as Flood of ETFs Hits the Market – Can SOL Recover?

A long list of Solana (SOL) exchange-traded funds (ETFs) has hit the trading floor this week, as Wall Street’s appetite for this token seems to be growing.

The first fund to kick off this wave of approvals was the Bitwise Solana Staking ETF (BSOL). This ETF is already managing nearly $500 million in assets just a couple of weeks after its launch.

Bitwise Solana Staking ETF (BSOL) Stats – Source: Bitwise Official Website

Its attractive staking APY of 7% seems to have pulled in sufficient interest from institutional players. However, other big asset management firms are already jumping on the tank to compete.

Solana ETFs Near $1 Billion in Assets

This week, Fidelity, VanEck, and Grayscale got the green light for their ETFs as well, and total assets linked to SOL ETFs are already nearing the $1 billion mark as a result.

Compared to other altcoins like Ethereum, Solana offers the highest APY for staking in the market. This could make these ETFs attractive as they add a layer of passive income to their NAV growth.

Meanwhile, a partially staked fund managed by REX-Osprey currently manages $220 million. However, this fund, the first listed ETF linked to SOL with a staking feature and spot exposure, has lost market share to its competitors as it relies on derivatives and can only stake a fraction of its holdings.

SOL/USD Daily Chart (Binance) – Source: TradingView

Looking at the daily chart, SOL has bounced strongly off the $130 level multiple times in the past few days. This showcases the strength of this support area and could be setting the stage for a major upward push.

The launch of multiple exchange-traded funds (ETFs) these days may have contributed to this, as institutional demand has probably spiked during this brief period.

If SOL pushes through the noise and this latest wave of pessimistic sentiment, it may climb back to $160 at least, tagging the upper bound of the price channel highlighted in the chart in the next few days.

Jobs Data for September Beats Expectations

Non-farm payrolls came in much better than expected today, with 119,000 jobs created in September compared to a consensus estimate of 50,000. The release of this report was delayed by the U.S. government shutdown.

Now that the market has more data to work on, we could start seeing a recovery across risky assets like cryptocurrencies. However, these are just early signals of a comeback, as the price action has not yet confirmed a trend reversal.

Ideally, SOL should rise to $160, and the Relative Strength Index (RSI) should move above the 14-day moving average. This will probably ignite some FOMO and get traders back into the market.

Positive employment data for October could help the market rebound as well, as it could increase the odds of a rate cut in December by the Federal Reserve.

If a bullish breakout happens, SOL could rise to $180 at some point. Meanwhile, climbing back to $200 still seems a bit difficult in these market conditions.