Solana briefly surged around 6% following a significant ETF announcement in the U.S., but market conditions quickly erased the gains.
Two major fund management companies opted for a taxable C-corporation (C-corp) structure to circumvent the U.S. Securities and Exchange Commission's (SEC) typically lengthy approval processes for standard ETF applications. This innovative approach appears to have resolved prior regulatory hurdles, enabling quicker market entry.
Following this announcement, Solana’s price swiftly rose from $150 to $160, representing a nearly 6% gain. However, due to a broader downturn in cryptocurrency markets, SOL rapidly retraced most of these gains, returning to approximately $151. Additionally, the SEC is set to announce its decision on Grayscale’s Digital Large Cap fund ETF conversion, encompassing Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL). This decision, expected mid-week, could significantly impact volatility, especially for SOL.
Investors are closely monitoring developments, remaining cautious amid anticipated market fluctuations this week.
