Although some cryptocurrency asset management companies are applying for the Solana Spot Exchange Traded Fund (ETF) to drive cryptocurrency market momentum, the actual market response has been found to be minimal.
What’s New: Kaiko, a cryptocurrency data platform, pointed out in a newsletter sent to investors on the 2nd that “the Solana spot ETF issue is moving away from the market.”
What Happened: On the 27th, asset management company VanEck applied for America's first Solana spot ETF with the U.S. Securities and Exchange Commission (SEC) . Subsequently , on the 28th, 21 Shares, which had applied for a Bitcoin and Ethereum spot ETF along with Ark Invest, applied for a Solana spot ETF .
Kaiko explained that the submission of this document temporarily revitalized market sentiment that had been depressed due to concerns about repayment of Mt. Gox's creditors. This event led to a 6% increase in Solana (SOL) price.
The effect was also noticeable in cumulative volume delta (CVD) data, which measures net buying and selling of cryptocurrencies. Coinbase saw a surge in spot purchases over the weekend, and Solana recorded $29 million in net positive CVD over the past week, according to Kaiko data.
‘Three Worlds’ Solana? : But this atmosphere did not last long. Kaiko argued that expectations for the Solana spot ETF are not yet high through relative price flow comparison with Ethereum, the second largest cryptocurrency in market capitalization. Solana is a cryptocurrency that describes itself as the ‘Ethereum killer’.
Looking at the trend by date, the price of Ether shows a better rise compared to Solana after the partial approval of the Ethereum spot ETF on May 23rd. Investors' high preference is reflected in their buying trend. This trend reversed around the 27th when news came out that Van Eck had applied for an ETF. However, it does not last long, and after about 3 days, we can see that the market leadership is lost to Ethereum again.
What’s next: Kaiko explained that “the Solana ETF’s impact on the derivatives market was limited.” The volume-weighted funding ratio of SOL tokens rose briefly on the 27th when the issue arose, but quickly returned to a neutral level thereafter. There was little change in open interest, and as of the 2nd, it was 20% lower than in early June, a month ago.
Kaiko cited the SEC's possible approval of the spot ETF as the reason why the market quickly regained calm. Unlike Bitcoin or Ethereum, Solana has little data accumulated in the derivatives market, and it is difficult to convince regulators about price stability and the possibility of manipulation.
