Solana's SOL Drops 7.84% to $145.08 Ahead of ETF Launch

Solana's native token, SOL, experienced a significant decline, dropping nearly 8% to trade at $145.08 as of 20:03 UTC on July 1, 2025. This drop occurred despite the imminent launch of the REX-Osprey SOL + Staking ETF, scheduled for July 2, 2025. The ETF is set to be the first U.S.-listed exchange-traded fund offering direct exposure to Solana’s native token while also providing access to staking rewards. This unique feature sets it apart from traditional crypto ETFs, which typically only track the price of the underlying asset.

The ETF, with the ticker SSK, will allocate approximately 80% of its assets to SOL, with roughly 50% of those tokens actively staked. This structure is under the Investment Company Act of 1940, which is generally viewed as more favorable from a regulatory standpoint. The 1940 Act structure may improve investor protections and expedite approvals, potentially influencing broader institutional participation. Analysts view this launch as a significant step for Solana’s credibility among U.S. financial institutions, as it offers a more comprehensive exposure to the asset than spot-tracking funds. This could serve as a catalyst for long-term adoption, especially as other firms pursue similar SOL ETF applications.

Despite the potential benefits of the ETF, SOL faced broad-based selling pressure on Monday, indicating a cautious market stance ahead of the event. Technical analysis highlights show that SOL declined $12.34 over the past 24 hours, dropping from $157.42 to $145.08—a 7.84% loss. Strong resistance was encountered at $157.42 during the first hour of the analysis window, followed by consistent selling pressure throughout the session. The largest volume spike occurred during the 06:00 UTC hour, exceeding 1.57 million units, with price rejection near $151.50. Support emerged at $146.55 during the 14:00 UTC hour, coinciding with elevated volume, indicating accumulation interest around that level. In the final hour of the analysis window from 19:01 to 20:00 UTC, SOL declined further from $146.31 to $145.08, hitting its lowest price of the day. Price action formed a well-defined descending channel, characterized by lower highs and lower lows across the entire trading period.

Despite the drop, support emerged near $146.55 with high volume, suggesting potential accumulation ahead of the ETF launch. This indicates that some investors may be positioning themselves to benefit from the upcoming ETF, which could drive demand for SOL in the near future. The launch of the REX-Osprey SOL + Staking ETF represents a major milestone for the Solana ecosystem, as it provides a regulated and accessible way for U.S. investors to gain exposure to SOL and its staking rewards. This could attract more institutional investors to the Solana network, further boosting its credibility and adoption.