- Canary files for a Solana ETF.
- The price of SOL reflected BTC’s drop below $70,000.
Canary Capital has filed an S-1 submit with the US Securities and Exchange Commission (SEC) for a spot Solana [SOL] Exchange Traded Fund (ETF).
According to the form, the ETF’s Net Asset Value (NAV) would be calculated based on the Chicago Mercantile Exchange (CME) CF Solana-Dollar Reference Rate.
This latest step follows the asset manager’s recent steps applications for place Ripple [XRP] And Litecoin [LTC] ETFs.
While Canary doesn’t have any live ETFs yet, its three recent filings underscore an ambitious move into the crypto investment space.
Canary’s support for Solana
Following the news, James Seyffart, ETF analyst at Bloomberg, highlighted Canary’s ambitions for a SOL ETF in a after on X (formerly Twitter).
Reflecting on Solana’s strong position within the blockchain ecosystem, Canary stated:
“Despite the hyper-competitive L1 and EVM landscape, Solana has emerged as a proven leader in decentralized applications.”
The statement also highlighted Solana’s strong DeFi ecosystem, citing sustainable metrics such as daily transactions, active addresses, and new addresses, all within a low-fee structure.
Moreover, the company expressed optimism about the ongoing problems grow the use of stablecoin would further strengthen Solana’s lead over its competitors.
Solana’s ETF Registrations
Canary’s filing marks the latest attempt to introduce a Solana ETF in the US, although it is not the first.
Earlier this year, asset managers VanEck and 21Shares filed for spot SOL ETFs and filed their S-1 filing in June.
It is worth noting that outside the US, Brazil was the first country to approve SOL ETFs in August.
SOL’s market performance
Despite the request, things weren’t looking so good price-wise. After being rejected at the critical $180 mark, SOL’s card was painted red.
At the time of writing, the altcoin was trading at $166, down 4.90% in the past day.
Notably, the decline in SOL’s price was accompanied by industry-wide losses Bitcoin [BTC] fell below the $70,000 mark.
Source: TradingView
Technical indicators reflected this trend, with both the RSI and CMF showing weakening bullish strength. At the time of writing, they stood at 53.46 and 0.15 respectively.
This downtrend puts SOL at risk of testing the USD 160 support level. If this is violated, the decline can deepen.
Moreover, if the 100-day (yellow) EMA is lost to sellers, the trend would tilt decisively in bearish favor.
The potential upside for SOL ETFs
Meanwhile, everything is not bad for SOL in the crypto field.
On October 14, AMBCrypto reported that Grayscale has filed to convert its Digital Large Cap Fund (GDLC) into a multi-crypto ETF, which included Solana.
On October 29, the SEC officially recognized Grayscale’s filing. This marks a significant step towards launching the first multi-asset crypto ETF in the US
A decision on the application is expected within 45 to 90 days.
As the ETF race continues, Canary Capital’s recent filing underlines the increasing demand for Solana-based investment vehicles.
However, will this momentum translate into regulatory approval? That remains to be seen.
