Will Solana’s Price Crash? Experts Discuss Challenges Blocking US Spot ETF
Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...
Traders are fretting over the risk that Solana’s price might crash as experts discuss the challenges that spot Solana ETFs face in terms of garnering approval in 2025.
Asset managers VanEck, 21Shares and others filed to form a spot Solana ETF earlier this year.
The US Securities and Exchange Commission’s deadline to either approve or reject the applications is March 2025.
And while the approval of spot Bitcoin and Ethereum ETFs this year has built up hopes that Solana could be next, many experts remain pessimistic.
And if that pessimism bleeds into the market, some fear it could trigger a Solana (SOL) price crash.
Solana was last changing hands around $144, around the mid-point of its multi-month $120-$190ish range.
If a negative catalyst did trigger a break below this range, the Solana price could drop swiftly back to the key $75 balance area could ensue.
Let’s explore the reasons why some experts are skeptical that spot Solana ETFs are coming in 2025.
Unlike Bitcoin (BTC) which has an immutable, pre-programmed supply schedule, and Ethereum (ETH), which frequently becomes deflationary at times of high network activity, Solana is an inflationary token.
20% of its supply remains locked, and will be released over time to VCs and investors like FTX.
Presumably, with these investors sat on a large profit, much of this supply will be unloaded onto the market.
X user Caramel highlights an upcoming 7.5 million SOL token unlock coming up in March 2025.
Brazil approved a Solana ETF! Solana FDV shows 20% of SOL is still locked. VCs are
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