Asset management firm CoinShares has officially withdrawn its application with the U.S. Securities and Exchange Commission (SEC) to launch a staked Solana exchange-traded fund (ETF). This development follows the discontinuation of the underlying structuring deal and asset purchase, as stated in the SEC’s filing, which clarifies that no shares were issued or will be issued under this registration.
Market Context and ETF Performance
The concept of a staked Solana ETF gained notable attention after REX-Osprey launched the first such product in June, followed by Bitwise’s version in October. Despite strong investor interest—Bitwise’s ETF attracted nearly $223 million on its debut—the market faced headwinds. The price of Solana (SOL) has struggled to maintain momentum, with prolonged downtrends since peaking above $250 in September.
While investor appetite for Solana ETFs remained high, with over $369 million pouring into these products in November—primarily driven by yields offered through staking rewards of 5-7%—the underlying token’s price continued to underperform. Despite the inflows, Solana’s price has remained subdued, hardly reflecting the enthusiasm surrounding these yield-generating vehicles. Analysts initially projected the token could reach as high as $400, driven by ETF inflows, but these forecasts have since been tempered. Recently, experts suggest SOL may struggle to reclaim the $150 mark, remaining in a bearish phase.
Solana's Price Performance and Market Dynamics
Solana’s price fell to approximately $120 in November, marking a five-month low and representing a 60% decline from the all-time high of around $295 reached in January. The initial surge was largely fueled by the launch of the Official Trump memecoin on Solana, which spurred increased trading activity for memecoins on the network.
Despite investor enthusiasm for staking-based products, Solana’s market performance underscores the disconnect between capital inflows into ETFs and the token’s actual market price. As the broader crypto market remains volatile, Solana continues to face challenges reclaiming early-year highs amid ongoing bearish pressures.