Solana Market Cap Surges 5% to $81.58 Billion on ETF Launch

Solana (SOL) has seen a significant influx of capital, driven in part by the launch of the first U.S.-based spot staking Exchange-Traded Fund (ETF) for the asset. As of the latest reports, Solana’s market capitalization has surged to $81.58 billion, marking an increase of $3.95 billion from the previous day's $77.63 billion. This surge in market capitalization is accompanied by a rise in Solana’s price, which is currently trading at $152.71 after gaining more than 3% on the day and approximately 7% over the past week.

The bullish momentum for Solana was ignited by the launch of the REX Osprey Solana Staking ETF, which began trading on July 2 on the Chicago Board Options Exchange (CBOE). This ETF is the first of its kind in the United States, focusing exclusively on Solana. Within just 20 minutes of its debut, the fund recorded around $8 million in trading volume, highlighting the strong investor interest. The ETF, a joint venture between asset managers REX Shares and Osprey Funds, offers direct exposure to Solana while also providing staking rewards. Approximately 80% of the fund is allocated to spot SOL holdings, with over half of that amount staked to generate on-chain yield. Investors can expect annual returns of between 7% and 7.3% from the staking portion. The remainder of the ETF’s portfolio includes Solana-linked international products and liquid staking assets, such as JitoSOL.

A critical factor behind the ETF’s approval was its legal structure. REX and Osprey established the fund as a C-corporation under the Investment Company Act of 1940, allowing them to navigate around regulatory hurdles that have delayed other crypto-related ETFs. This innovative approach has set a precedent for future crypto ETFs, potentially paving the way for more regulatory approvals in the sector. Meanwhile, the U.S. Securities and Exchange Commission (SEC) is reviewing additional Solana ETF applications from major financial firms, including VanEck, Franklin Templeton, Fidelity, Galaxy Digital, and Grayscale. Although none have been approved yet, the SEC has extended its review periods into late July. Analysts now place a 95% chance that at least one Solana ETF will receive regulatory approval before the end of 2025.

Solana's ecosystem has been strategically investing in its growth, with publicly listed Canadian company SOL Strategies Inc. purchasing over 52,000 Jito Network (JTO) tokens worth $100,000. This investment underscores the confidence in Solana's potential and its expanding ecosystem. Additionally, the launch of tokenized stock trading on Solana, facilitated by Backed's xStocks going live on platforms like Bybit and Jupiter, further enhances the platform's utility and appeal to investors. The total value locked (TVL) in Solana's ecosystem rose over 4% to close the week at $10.125 billion, making it one of the top performers among the leading DeFi blockchain networks. This increase in TVL, coupled with the launch of the ETF, positions Solana as a strong contender in the competitive DeFi landscape. The ETF's debut is expected to attract more institutional investors, potentially leading to further growth and development within the Solana ecosystem.