The new Bitwise Solana staking exchange-traded fund (ETF), BSOL, has debuted with $417 million in weekly inflows. Bloomberg analyst Eric Balchunas highlighted the milestone. This event underscores the growing Solana institutional demand.
Balchunas reported that BSOL led capital inflows among all cryptocurrency exchange-traded products (ETPs) for the week. It notably surpassed funds based on Bitcoin and Ethereum. Furthermore, this product offers US investors regulated access to SOL staking yields. This feature was previously reserved only for direct on-chain participants. The fund ranked 16th in overall flows, competing with traditional financial products.
The success of this ETF opens the floodgates for institutional capital. Millions of dollars can now enter the Solana ecosystem in a regulated manner. As the market awaits the approval of a spot ETF for SOL, BSOL’s success measures pent-up demand. In fact, Grayscale Investments estimates that Solana ETPs could capture 5% of all SOL tokens within two years, valued at over $5 billion today.
Is Wall Street Betting Massively on the SOL Ecosystem?
On the other hand, industry analysts expect spot Solana ETF approvals as soon as this month. The momentum from Solana institutional demand could be the catalyst the cryptocurrency needs. It would help SOL break out of an ascending channel it has maintained for 7 months. Currently, the asset is testing crucial support in the $175 zone.
This $175 level is a key support confluence. It coincides with a historical demand zone and the base of the ascending channel. However, technical indicators are mixed. The MACD suggests a potential short-term downtrend. Nonetheless, the RSI is near 33, indicating that the asset might be oversold and have little room left to fall. If SOL loses the $175 support, it could fall 30% to $120.
The Bitwise milestone confirms strong Solana institutional demand. Holding the $175 support is vital for attempting a breakout. The key resistance to overcome remains the $300 level. If the price manages to break that barrier, it could start a new uptrend targeting $500. Wall Street’s interest is now evident and could define the market’s next big move.
