Amid Solana’s (SOL) growing dominance in the web3 space, Canary Capital, an investment management firm founded by Steven McClurg, one of the founders of Valkyrie Funds, has filed with the U.S. Securities and Exchange Commission (SEC) to expand its spot ETF. The Canary Solana ETF, filed on Wednesday, October 30, aims to provide institutional investors with a safe and highly liquid gateway to investing in one of the fast-growing altcoins.
Canary Capital has aggressively doubled down on its focus on the altcoin market despite the low traction recorded by the Spot Ether ETFs. The company has already applied for a spot Litecoin (LTC) ETF and spot XRP ETF, which may be approved next year. The company’s first altcoin offering was the Canary HBAR Trust, which ensures institutional investors have access to the growing Hedera network.
Increasing demand for Solana by institutional investors
Over the past year, several fund managers have shown interest in the Solana market by filing for spot ETFs in various jurisdictions. For example, Brazil’s Securities and Exchange Commission (CVM) has already approved two spot Solana ETFs, which will be launched shortly.
In mid-June this year, 3iQ applied to list Solana Exchange Traded Products (ETP) on the Canadian Toronto Stock Exchange. In the United States, VanEck has also filed an application with the American SEC for a spot Solana ETF.
“Solana’s robust DeFi ecosystem has driven strong, sustainable on-chain analytics as measured by transactions per day, active addresses and new addresses, while maintaining a low-fee environment for all consumers. The future growth of the native on-chain stablecoin implementation is also likely to further accelerate the leading edge that Solana maintains over its peers,” Canary Capital said. noted.
Impact on SOL Price Action
The Solana Prize has benefited significantly from mainstream adoption over the past year, compared to its peers. The large-cap altcoin, with a fully diluted valuation of about $102 billion and a daily average trading volume of about $4 billion, has signaled an inevitable bullish breakout, similar to Bitcoin, to a new all-time high.
From a technical analysis perspective, SOL price needs to consistently close above the macro declining logarithmic trend and also above the July peak to negate a potential near-term reversal to the established support level around $128.
