Solana ETF Draws $12 Million Inflows on Day One

The launch of the Solana ETF with a staking feature has drawn significant investor interest, marking a notable development in the cryptocurrency market. The ETF, managed by REX Shares and Osprey Funds, opened with day-one inflows exceeding $12 million, highlighting the strong appetite among institutional investors for crypto-backed funds that offer staking capabilities.

This ETF is the first of its kind in the U.S. market, featuring direct on-chain staking. Approximately 80% of its assets are allocated to Solana tokens, with half of these tokens staked to generate yield. This innovative approach leverages Solana’s proof-of-stake mechanism, providing investors with access to regulated yield opportunities. The ETF targets both traditional finance and crypto-native audiences, potentially increasing Solana’s staking activity and market engagement.

The introduction of this ETF is expected to position Solana competitively against major assets like ETH and BTC, which lack staking features in their ETFs. This could benefit governance tokens and Solana-based DeFi assets by increasing participation and interest. Analysts recognize the Solana ETF as a pioneer for staking-enabled financial products, noting that historically, cryptocurrency ETFs have served as key legitimization moments for cryptocurrencies, with substantial market engagements following previous launches.

The launch of the Solana ETF coincides with heightened activity on the Solana network. The total value locked (TVL) on the Solana blockchain has increased, reflecting growing interest and participation in the network's decentralized finance (DeFi) ecosystem. This rise in network activity, coupled with the launch of the staking ETF, suggests a bullish outlook for Solana's price performance.

Investors are showing considerable interest in the Solana token, as evidenced by the launch of staking ETFs that have recorded substantial inflows. The debut of these ETFs has outperformed other crypto products, highlighting the growing institutional demand for Solana. Additionally, plans for a Solana treasury are underway, with recent purchases of SOL tokens by DeFi Development Corp. These developments are expected to further bolster the Solana price in the coming months.

The Solana price is at a critical juncture, with several factors potentially driving a rally. High institutional demand, rising network activity, and a bullish fractal pattern observed in April 2025 are among the key indicators suggesting a potential price increase. The fractal pattern, which involves an upwards slipping parallel channel, hints at a 34% move to the upside, targeting a price of $208. If this pattern holds, Solana's price could surpass $200 by the end of July 2025.

However, it is important to note that the Solana price may also face challenges if buying pressure fades. The AO histogram bars, which currently support the likelihood of gains, could shift to bearish territory, potentially preventing significant price increases. Despite this uncertainty, the overall sentiment remains positive, with institutional demand and network activity serving as key drivers for Solana's price performance.