Solana ETF Filings Ignite SEC Review – Why Did SOL Price Drop 3.29%?
The cryptocurrency market was abuzz as major financial institutions filed amendments for Solana (SOL) spot ETFs, signaling a potential regulatory breakthrough. However, Solana’s price dropped 3.29% the same day, leaving traders puzzled. What does this mean for SOL’s future?
Solana ETF Filings: A Regulatory Milestone
On July 31, 2025, several prominent firms including Bitwise, Grayscale, and CoinShares submitted amended S-1 filings for Solana ETFs. Grayscale’s proposal included a 2.5% fee structure payable in SOL, indicating serious intent. These filings suggest the SEC is actively reviewing crypto ETF structures beyond just Bitcoin and Ethereum.
Why Did Solana Price Drop Despite ETF News?
Contrary to expectations, SOL fell 3.29% to $170.24 on the day of the announcements. Possible reasons include:
- The news may have been already priced in
- Market skepticism about near-term approval
- Profit-taking after recent gains
Technical Analysis: Key Levels to Watch
SOL’s daily chart shows concerning signals:
| Indicator | Level | Significance |
|---|---|---|
| Bollinger Bands | $158 (lower band) | Potential support |
| 200-day SMA | $200 | Strong resistance |
| Critical support | $168-$170 | Bullish defense zone |
Market Outlook: Bullish vs Bearish Scenarios
Bullish case: Holding above $170 could lead to retesting $190 and potentially $210 if ETF optimism grows.
Bearish case: Breakdown below $170 may trigger a slide toward $158, possibly extending to $145.
SEC Review Process: What Comes Next?
The ETF approval process remains in early stages. Traders should monitor:
- SEC commentary on crypto ETFs
- Institutional accumulation patterns
- Technical support levels
Conclusion: Long-Term Promise, Short-Term Caution
While Solana ETFs represent a significant long-term catalyst, current price action suggests consolidation. Traders should watch the $168-$170 zone closely for signs of buyer conviction or further weakness.
Frequently Asked Questions
Q: When might the SEC decide on Solana ETFs?
A: The review process typically takes months. Don’t expect immediate decisions.
Q: Why did SOL drop when Bitcoin rose after ETF news?
A: Market maturity differs – Bitcoin has established ETF precedent while Solana’s is unproven.
Q: What’s the best strategy for SOL traders now?
A: Monitor the $168-$170 support zone and wait for clearer SEC signals.
Q: Could other cryptos like XRP get ETFs too?
A: SEC is reviewing multiple filings, but approval isn’t guaranteed for any.
