Solana News Today: Institutional Frenzy Fuels Solana ETF Surge Despite Price Swings

21Shares Launches Spot Solana ETF Amid Market Instability

21Shares has introduced its sixth spot Solana (SOL) exchange-traded fund (ETF) as institutional demand for the cryptocurrency continues to surge. The firm submitted the final prospectus for the ETF to the U.S. Securities and Exchange Commission (SEC), which swiftly approved the product, allowing it to begin trading immediately. This launch adds to a rapidly expanding ecosystem of Solana-linked ETFs, with competitors like Fidelity, VanEck, and Grayscale also entering the market.

The 21Shares ETF carries a 0.21% management fee and follows the firm's recent introduction of two crypto index ETFs that include exposure to Bitcoin, Ethereum, Solana, and Dogecoin. Fidelity's FSOL fund, launched on November 19 with a 0.25% fee, and Canary Capital's SOLC ETF, which partners with Marinade Finance for staking, further illustrate the growing institutional appetite for Solana. VanEck's VSOL fund, which offers a fee waiver until assets reach $1 billion, has also attracted $7.32 million in initial inflows.

Cumulative inflows into Solana ETFs have surged to $421 million over 16 consecutive trading days, with Bitwise's BSOL fund leading the charge with $388.1 million in inflows. Grayscale's GSOL and Fidelity's FSOL added $28.5 million and $2.1 million, respectively. These figures highlight the resilience of Solana's institutional market, even as broader cryptocurrency prices face volatility.

Despite the ETF-driven optimism, Solana's spot price has shown mixed signals. The token traded near $140.26 after a 2.28% daily gain but remains lower on the week. Analysts like johnnybtrader on X noted that Solana recently swept liquidity near $130 and is attempting to stabilize above that level. A sustained move above $150 could signal a shift toward higher price targets, with $210 attracting attention as a potential upside limit.

Meanwhile, BlackRock has opted to focus exclusively on Bitcoin and Ethereum ETFs, avoiding the Solana market. The firm's leadership cited the need for greater maturity and liquidity in altcoins before expanding its crypto ETF lineup. This strategic decision contrasts with the aggressive expansion by Fidelity and other firms, raising questions about the long-term viability of altcoin ETFs.

Solana's market structure also suggests a potential recovery. On-chain data indicates rising open interest in futures contracts and increased spot demand, with open interest climbing to $7.3 billion. The token's four-hour chart shows a V-shaped recovery pattern, while the weekly chart highlights strong support at $130. Historical rebounds from this level have driven Solana to $250, suggesting a similar trajectory could unfold.

The ETF landscape for Solana is set to intensify as more products launch. Fidelity's FSOL and Canary Capital's SOLC are already trading, while Grayscale and VanEck continue to add to the mix. With BlackRock's absence and the growing competition among traditional asset managers, the Solana ETF market is poised to shape the broader cryptocurrency investment landscape in the coming months.