- Potential Solana staking ETF approval could trigger institutional capital inflows.
- Treasury companies currently hold 20.9M SOL representing 3.64% of supply.
- Technical analysis points to $300 target despite recent pullback below $200.
Expectations around a possible Solana staking ETF approval in the United States have intensified as October approaches. Analyst Nate Geraci suggested the Securities and Exchange Commission will likely approve multiple Solana staking ETF applications in coming weeks.
Such approvals would provide institutional investors with regulated access to Solana’s staking yields through transparent financial products. “Enormous next few weeks for spot crypto ETFs…” Geraci noted in recent commentary.
The potential ETF launch could replicate effects seen when Ethereum gained similar investment vehicles. Institutional capital flowing into regulated products typically reduces circulating supply on spot markets, creating upward price pressure through supply-demand dynamics.
Institutional holdings reach major levels
Solana has already attracted considerable institutional capital ahead of potential ETF approvals. Forward Industries currently holds over 6.8 million SOL valued at approximately $1.4 billion, making it the largest treasury holder.
Total SOL held by treasury companies has surpassed 20.9 million tokens, accounting for roughly 3.64% of total supply. This concentration in institutional hands could accelerate capital inflows if staking ETF products receive regulatory approval.
The existing institutional positioning indicates strategic confidence in Solana’s long-term prospects. Combined with potential ETF-driven demand, these holdings could serve as a catalyst for price appreciation.
Technical charts show SOL recently dropped below $200, though many analysts argue the uptrend structure remains intact. The pullback may represent a retest of the lower boundary of an ascending parallel channel.
“Looks like a perfect bounce opportunity before we head back to $260+ and eventually new highs. Buy the dip,” one analyst commented on the price action.
Price targets extend to $300 and beyond
Multiple technical analysts have identified $300 as a logical next target if SOL maintains its ascending support line. Current price levels could offer attractive entry points according to this bullish technical outlook.
Weekly chart analysis suggests the market may be completing a Wyckoff accumulation phase. The recent correction could represent a final major dip before potential Q4 rally acceleration.
Some analysts project SOL could reach $500 during the current market cycle based on historical patterns and institutional adoption trends. However, these longer-term projections depend on sustained momentum and favorable market conditions.
Source: https://thenewscrypto.com/solana-etf-approval-could-drive-institutional-flows-toward-300-target/