Solana Drops 8% as First U.S. Staking ETF Launch Nears

Solana (SOL) experienced a significant decline of 7.84% in its value over the past 24 hours, trading at $145.08 as of 20:03 UTC on July 1, 2025. This drop comes despite the broader crypto market, as represented by the CoinDesk 20 index, only decreasing by 0.24% during the same timeframe. The sharp fall in Solana’s price precedes a major milestone for the ecosystem: the launch of the REX-Osprey SOL + Staking ETF.

Introducing the REX-Osprey SOL + Staking ETF

Scheduled for debut on July 2, 2025, the REX-Osprey SOL + Staking ETF (ticker: SSK) will be the first U.S.-listed exchange-traded fund to offer direct exposure to Solana’s native token, along with access to staking rewards. Unlike traditional crypto ETFs that merely track price movements, this innovative fund allows holders to benefit passively from Solana’s proof-of-stake reward system.

The ETF plans to allocate approximately 80% of its assets to SOL, with about 50% of those tokens actively staked. This structure is set under the Investment Company Act of 1940, which is generally considered more favorable from a regulatory standpoint compared to the 1933 Act. The 1940 Act framework could enhance investor protections and potentially expedite approvals, which may encourage broader institutional participation.

Market Reactions and Implications

Despite the impending launch of the ETF, Solana faced significant selling pressure on Monday, highlighting the market’s cautious approach ahead of this event. Analysts suggest that the launch could be a pivotal moment for Solana, enhancing its credibility among U.S. financial institutions. By integrating yield generation into the ETF, it provides a more comprehensive exposure to the asset than spot-tracking funds.

Some market participants are optimistic, viewing this development as a potential catalyst for long-term adoption. This is particularly relevant as other firms, including Grayscale, VanEck, and Bitwise, are pursuing similar SOL ETF applications.

Technical Analysis Highlights

Solana’s price dropped by $12.34 over the past 24 hours, falling from $157.42 to $145.08, marking a 7.84% loss. The trading session was characterized by strong resistance at $157.42 during the initial hour, followed by consistent selling pressure. The largest volume spike occurred at 06:00 UTC, with over 1.57 million units traded and price rejection near $151.50.

Support was noted at $146.55 during the 14:00 UTC hour, coinciding with elevated volume, indicating an accumulation interest at that level. In the final hour from 19:01 to 20:00 UTC, SOL further declined from $146.31 to $145.08, reaching its lowest price of the day. The price action formed a descending channel, marked by lower highs and lower lows throughout the trading period.

Looking Ahead

The launch of the REX-Osprey SOL + Staking ETF represents a significant step in the evolution of cryptocurrency investment products. It could pave the way for more innovative financial instruments that integrate blockchain technology’s unique features, such as staking rewards, into traditional investment vehicles.

As the market continues to mature, the success of this ETF could influence regulatory perspectives and investor sentiment, potentially leading to increased institutional involvement in the crypto space. Investors and analysts will be closely monitoring the ETF’s performance and its impact on Solana’s market dynamics in the coming weeks.

In conclusion, while the immediate market reaction to the ETF launch has been cautious, the long-term implications for Solana and the broader cryptocurrency market could be profound, potentially setting a precedent for future financial products that blend traditional finance with digital assets.

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