Canary Capital Files With the SEC to Offer Spot Solana (SOL) ETF

Amid the growing Solana (SOL) dominance in the web3 space, Canary Capital, an investment management firm founded by Steven McClurg

Investment management firm Canary Capital, known for its role in establishing Valkyrie Funds, has filed with the United States Securities and Exchange Commission (SEC) to offer its spot exchange-traded fund (ETF).

Announced on Wednesday, the Canary Solana ETF will provide institutional investors with a convenient and liquid method for investing in one of the rapidly growing altcoins.

Canary Capital is ramping up its efforts in the altcoin market despite the limited success of Spot Ether ETFs. The firm has already filed for a spot Litecoin (LTC) ETF and a spot XRP ETF, which could be approved in 2024.

Earlier this year, Canary Capital filed with the SEC to offer the Canary HBAR Trust, an institutional-grade vehicle for accessing the Hedera network.

Rising Institutional Demand for Solana

Throughout 2023, several fund managers have expressed interest in the Solana market by filing for spot ETFs in various jurisdictions.

For example, the Brazilian Securities and Exchange Commission (CVM) has approved two spot Solana ETFs, which are expected to launch soon.

In mid-June, 3iQ filed to list a Solana exchange-traded product (ETP) on the Toronto Stock Exchange in Canada.

Within the United States, VanEck has also filed with the SEC for a spot Solana ETF.

Highlighting Solana's strengths, Canary Capital noted in the filing:

“Solana's robust DeFi ecosystem has led to strong sustained on-chain analytics as measured by transactions per day, active addresses, and new addresses while maintaining a low fee environment for all consumers. Future growth in native on-chain stablecoin deployment will also likely further accelerate the commanding lead Solana maintains over its peers.”

Impact on SOL Price Action

Compared to its peers, Solana price has benefited significantly from mainstream adoption over the past year.

The large-cap altcoin, boasting a fully diluted valuation of approximately $102 billion and an average daily trading volume of around $4 billion, has hinted at a potential bullish breakout, possibly leading to a new all-time high.

From a technical analysis perspective, to invalidate any short-term reversal towards the established support level near $128, SOL price needs to consistently close above the macro falling logarithmic trendline and July's peak.

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