Solana ETF Listing on DTCC Boosts Approval Odds to 91%

VanEck’s proposed Solana ETF (VSOL) has been listed on the Depository Trust & Clearing Corporation (DTCC) under its “active and pre-launch” category. This listing makes the ETF eligible for electronic trading and clearing, pending a final green light from the U.S. Securities and Exchange Commission (SEC). Although approval is not guaranteed, the DTCC registration adds momentum to the growing field of ETF issuers. Analysts have commented that the SEC is engaging with the proposal, which is a positive sign.

Market confidence in a Solana ETF is climbing fast. Traders now assign a 91% chance that a spot Solana ETF will be approved in 2025, a significant jump in just a few days. While the SEC has already approved Bitcoin and Ethereum spot ETFs, Solana is emerging as the next likely candidate, supported by its robust developer activity, fast transaction speeds, and expanding DeFi ecosystem.

Despite growing optimism around the Solana ETF, SOL’s price action remained under pressure. At the time of reporting, SOL traded at $147.26, down 0.24% on the day. The Relative Strength Index (RSI) was near 42, indicating weakened momentum and close to oversold territory. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator showed a bearish crossover, with the signal line positioned above the MACD line, confirming downward pressure. While ETF news may be bullish long-term, short-term price recovery could face resistance unless broader buying demand returns.

Solana's journey to prominence has been marked by its impressive scalability and its role in the decentralized finance (DeFi) and non-fungible token (NFT) sectors. In 2021, SOL reached an all-time high of $260-$290, riding the wave of innovation and adoption in these areas. The cryptocurrency's ability to handle a high volume of transactions quickly and efficiently has positioned it as a strong contender in the competitive landscape of blockchain platforms.

Institutional interest in Solana has also been on the rise, with strategic agreements and investments being made in the ecosystem. DeFi Development, for instance, has entered into a significant $5 billion stock agreement, betting big on the future of Solana. This influx of institutional capital is seen as a vote of confidence in the platform's technology and its potential for growth.

Despite the recent drop in its price, Solana has shown resilience and continues to attract attention. The cryptocurrency has rallied by 8% in recent trading sessions, breaking past key resistance levels and heading towards $160. This price movement is indicative of the underlying strength and potential of SOL, as it navigates through a cooling broader market.

The combination of whale transfers, ETF approval odds, and institutional interest has created a perfect storm of hype around Solana. While the cryptocurrency faces challenges and uncertainties, the current momentum suggests that now could be an opportune time for investors to consider betting on SOL. However, as with any investment, it is crucial to conduct thorough research and assess the risks involved before making any decisions.