Solana Falls 7.8% Before REX-Osprey SOL Staking ETF Launch
Solana (SOL) Experiences Significant Drop Ahead of ETF Launch
Solana’s Recent Market Performance
In the last 24 hours, Solana (SOL) has seen a notable decline of 7.84%, dropping from $157.42 to $145.08 as of 20:03 UTC on July 1, 2025. This downturn starkly contrasts with the overall cryptocurrency market, which only dipped by 0.24% according to the CoinDesk 20 Index.
Anticipation Surrounds the REX-Osprey SOL + Staking ETF
The recent sell-off comes just a day prior to the much-anticipated launch of the REX-Osprey SOL + Staking ETF (ticker: SSK) on July 2. This ETF is groundbreaking as it will be the first in the U.S. to provide direct exposure to Solana’s token while also allowing investors to benefit from staking rewards. Unlike conventional spot ETFs, this fund is structured to enable passive income through Solana’s proof-of-stake mechanism, offering a more extensive investment opportunity.
ETF Structure and Investor Protections
The ETF will allocate approximately 80% of its assets to SOL, with around half of these tokens being actively staked. Designed under the Investment Company Act of 1940, this fund aims to provide enhanced protections for investors compared to those registered under the 1933 Act, which may attract more institutional investors.
Market Dynamics and Technical Analysis
Despite the positive outlook associated with the ETF launch, SOL faced considerable selling pressure on Monday. Technical analysis indicates a strong resistance level at $157.42, with a significant volume spike exceeding 1.57 million units recorded at 06:00 UTC, leading to price rejection near $151.50. Support levels were identified around $146.55 during the 14:00 UTC hour, indicating some accumulation interest. By the end of the trading session, SOL reached a low of $145.08, forming a descending channel characterized by lower highs and lows throughout the day.
Future Outlook and Institutional Interest
Market analysts believe that the ETF launch could serve as a catalyst for long-term adoption and increased institutional investment in Solana. Companies such as Grayscale, Bitwise, and VanEck are also exploring SOL ETF offerings, highlighting a growing interest in the Solana ecosystem. However, traders are expected to remain cautious in the short term as they respond to the unfolding news.
