21Shares has officially cleared the last regulatory hurdle to introduce its Solana ETF, which comes with a management fee of 0.21 percent. This development positions 21Shares as a significant player in the growing Solana ETF market, now officially boasting six options for investors in the United States.
Recent regulatory filings indicate that Cboe has approved the product for trading, allowing 21Shares to move forward with its launch. This ETF is notable for being one of the most cost-efficient offerings in the U.S. market, reflecting a strategic approach to attract capital.
In addition to the new Solana ETF, 21Shares is expanding its portfolio by recently unveiling two crypto index products. These products provide exposure to a variety of cryptocurrencies, including Bitcoin, Ethereum, Solana, and Dogecoin, under the Investment Company Act of 1940. This aggressive expansion highlights 21Shares” commitment to becoming a leading issuer in the digital asset space.
The competition in the Solana ETF arena remains fierce. Fidelity has launched its own Solana ETF, designated as FSOL, with a 0.25 percent management fee. Additionally, it offers a 15 percent cut on staking rewards, leveraging its well-known brand to attract institutional clients.
Another competitor, Canary Capital, has opted for a unique strategy by listing the Canary Marinade Solana ETF (SOLC) on Nasdaq. This fund plans to stake all of its SOL holdings during typical market conditions, a move facilitated by securing exclusive staking rights for two years.
VanEck has also entered the fray, launching its VSOL fund with an initial capital of $7.32 million. This fund features a no-fee model until it reaches $1 billion in assets under management (AUM), positioning it as a competitive option for investors.
Despite recent price volatility, the appetite for Solana ETFs has not waned. On November 18, the collective Solana ETF sector managed to attract $26.2 million in new inflows. Notably, Bitwise”s BSOL led the charge with $23 million in inflows, marking its 15th consecutive day of positive capital movement. This trend stands in contrast to the recent withdrawals experienced by Bitcoin and Ethereum spot ETFs.
As of now, SOL is trading around $139.52, reflecting a decline of over 10 percent within the past week. Interestingly, the asset is revisiting a horizontal demand area that has historically prompted strong bullish reactions. Technical indicators show an RSI at 35.31, indicating that sellers may be losing momentum, while the MACD is below the signal line, suggesting bearish momentum is potentially weakening.
Should buyers return at this critical price level and ETF inflows maintain their current trajectory, there is potential for a rebound in SOL”s price. A recovery above $150 could signal a break in the downtrend, enticing momentum-driven traders.
With the launch of 21Shares” ETF, the competition in the Solana market is expected to intensify. Each of the six ETFs provides distinct fee structures, staking models, and market strategies, indicating that issuers anticipate sustained demand for exposure to SOL rather than a fleeting trend. As capital inflows continue, macro investors are positioning themselves for the next phase in Solana”s evolution.
