Key Insights:
- Amplify Solana ETF receives green light for launch today, sparking market optimism.
- The launch appears to have provided some relief to traders amid the broader crypto market selloff.
- The US Spot SOL ETF has attracted robust inflows since launch.
Amplify ETF Trust’s Solana ETF gets approval to start trading on the Cboe BZX Exchange today. This will be the third ETF going live following Bitwise Solana Staking ETF (BSOL) and Grayscale Solana ETF (GSOL) last week.
SOL ETFs are recording massive demand from institutional and retail investors despite SOL price slump.
Solana ETF: Amplify SOL 3% Monthly Option Income ETF (SOLM) Launches
Amplify ETF Trust announces the launch of the Amplify Solana 3% Monthly Option Income ETF (SOLM), according to an announcement on November 4.
The issuer revealed a 0.75% management fee and Cboe as the exchange for listing. The Amplify SOL 3% Monthly Option Income ETF got auto-effective to trade on the exchange with 8-A and CERT filings.
The SOLM income ETF is the latest crypto-linked product addition to Amplify’s YieldSmart ETFs. Income ETFs based on call options gained pace with BlackRock Bitcoin Income ETF filings last month.
Amplify Solana Income ETF targets 36% annual option premium income, with a 5-10% weekly Solana capital appreciation and preserving unlimited upside on the rest of the portfolio.
SOLM will provide income by writing weekly out-of-the-money call options on a portion of the portfolio’s Solana price exposure. This YieldSmart options strategy is designed to offer capital appreciation potential and 3% monthly income.
By using short-dated weekly options, this strategy provides four times more opportunities to reset strike prices and collect income compared to monthly options, enabling potential for compounded income and greater total return.
SOLM seeks Solana growth exposure and consistent income through an active risk-managed strategy.
According to Christian Magoon, CEO of Amplify ETFs, SOLM exceeds yields from SOL staking ETFs. The issuer selected Solana as the network generates more revenue than any other blockchain.
Solana Price Slips Despite Spot ETF Inflows
Institutions keep stacking Bitwise Solana Staking (BSOL) and Grayscale Solana ETFs (GSOL). The Spot Solana ETF recorded $70 million on Monday.
Since launch, the Spot SOL ETFs have recorded $269 million in inflows. Bitwise Solana Staking ETF leads with $262.2 million in inflows due to a low 0.20% fee and a fee waiver until AUM reaches $1 billion.
Solana price tumbled nearly 10% in the past 24 hours, with the price currently trading at $161.52. The 24-hour low and high were $156.19 and $176.46, respectively.
The recent rebound came as trading volume jumped by 73% over the last 24 hours. This indicates interest among traders despite the crypto market crash.
In the daily timeframe, the price has dropped below the 50-SMA, 100-SMA, and 200-SMA at the time of writing. Whereas, the Relative Strength Index (RSI) plunged to 31, signaling potential for further downside move.
Derivatives markets record selling in the last few hours, as per CoinGlass data. At the time of writing, the total SOL futures open interest had crashed 21% to $8.18 billion in the last 24 hours.
Also, SOL futures OI on CME and Binance tumbled more than 32% and 12%, respectively. This signals massive selling by derivatives traders.