Solana Decline Deepens…"Spot ETF Approval Next Month Is Key"

Solana (SOL) price decline is deepening. Analysts say whether Grayscale's spot Solana exchange-traded fund (ETF) application, which is scheduled for next month, will be approved could determine the future price direction.

On the 26th, according to CoinMarketCap, Solana's price was trading at $192.91 as of 9:50 a.m., down 8.49% from the previous day. Compared with a week ago, it has fallen 22.25%. It is the first time Solana's price has fallen below $200 in about 20 days since the 7th of this month.

The key is the review deadline for the spot Solana ETF scheduled for next month. The U.S. Securities and Exchange Commission (SEC) must decide on Grayscale's spot Solana ETF application by the 10th of next month. Cointelegraph reported, "The Rex Osprey Staking Solana ETF launched this July offers spot investment opportunities but is structurally less significant compared to a pure spot product," adding, "Grayscale's spot ETF has the potential to expand direct participation by institutional investors, increase liquidity, and boost market participation."

Grayscale is not the only one awaiting review. The SEC plans to sequentially review spot Solana ETF applications filed next month by major asset managers such as Bitwise, 21Shares, and VanEck. The review deadline is the 16th of next month.

U.S. crypto venture capital firm Pantera Capital said the introduction of spot ETFs could be a turning point for Solana. Pantera Capital said, "Institutional holdings of Solana are 1% of total supply, which is significantly lower than Bitcoin (16%) and Ethereum (7%)," and added, "With spot Solana ETF approval expected as early as Q4 this year, Solana will soon reach an 'institutional moment'."