CoinShares has withdrawn its application for a staked Solana ETF (exchange-traded fund) with the US Securities and Exchange Commission (SEC). This withdrawal comes at a time of increasing competition in the crypto ETF segment and with regulatory requirements evolving.
A filing on November 28 stated, "The Registration Statement sought to register shares to be issued in connection with a transaction that was ultimately not effectuated. No shares were sold, or will be sold, pursuant to the above-mentioned Registration Statement."
Solana ETFs See Strong Start As Investors Chase High Yields
The first staked Solana ETF, issued by REX-Osprey, debuted in the US in June. This was followed by the launch of a similar product from Bitwise in October. Bitwise’s fund launched with nearly $223 million in assets on its first day of trading, and collected approximately 50% of the value that the REX-Osprey ETF had accumulated over a couple of months, according to Bloomberg ETF analyst Eric Balchunas.
$BSOL is beginning life with $220m in assets. Impressive, already half the size of $SSK. Surprised they didn't hold off tho and have it come in on Day One to get volume and flows higher. Good news is now we'll have only organic, easier to measure true demand pic.twitter.com/bHXQuCRw1Z
Several other staked Solana ETFs have since entered the US market. Collectively, the SOL investment products have seen more than $369 million in capital flows in November. Solana ETFs also managed to buck the trend seen with spot Bitcoin and Ethereum ETFs that experienced record outflows in October and November amid the recent market slump.
The strong performance is underpinned in part by the 5-7% staking rewards on offer.
Data from Farside Investors shows that since November 10, the funds have only seen net daily outflows on November 26, when $8.2 million left the investment products. The funds resumed their inflows streak in the latest trading session, with investors injecting $5.3 million into the ETFs. On the day, Grayscale’s GSOL led the charge with $4.3 million inflows. Fidelity’s FSOL was the only other SOL ETF to see inflows on the day, with $2.4 million entering its reserves.
21Shares’ TSOL was the only fund to record outflows yesterday, with $1.4 million leaving its reserves. This fund was also responsible for breaking the funds’ net daily inflows streak the day before, after investors withdrew $34.4 million from the fund on that day.
SOL Price Trades In A Downtrend
Despite the continued inflows for SOL ETFs, the altcoin that the funds track has seen its price slide in recent weeks. Over the past month, SOL’s price has plummeted over 28%, coinciding with the broader crypto market pullback.
Data from GeckoTerminal shows that SOL trades in a medium-term downtrend. Technical indicators such as short-term Exponential Moving Averages (EMAs), the Moving Average Convergence Divergence (MACD), and the Relative Strength Index (RSI) show that bears still have a tight grip on the altcoin’s price. However, SOL is attempting to break above the upper boundary of the descending price channel. A breach of this barrier could lead to a bullish shift in momentum and strength for SOL.