CoinShares Pulls SEC Filing For Staked Solana ETF

CoinShares has withdrawn its application for a staked Solana ETF (exchange-traded fund) with the US Securities and Exchange Commission (SEC).

The withdrawal comes at a time of increasing competition in the crypto ETF segment and with regulatory requirements evolving.

“The Registration Statement sought to register shares to be issued in connection with a transaction that was ultimately not effectuated,” a Nov. 28 filing said. ”No shares were sold, or will be sold, pursuant to the above-mentioned Registration Statement.”

Solana ETFs See Strong Start As Investors Chase High Yields

The first staked Solana ETF, issued by REX-Osprey, debuted in the US in June. That was followed by the launch of a similar product from Bitwise in October. 

Bitwise’s fund launched with nearly $223 million in assets on its first day of trading, and collected approximately 50% of the value that the REX-Osprey ETF had racked up over a couple of months, according to Bloomberg ETF analyst Eric Balchunas. 

Several other staked Solana ETFs have since entered the US market. 

Collectively, the SOL investment products have seen more than $369 million in capital flows in November.  Solana ETFs also managed to buck the trend seen with spot Bitcoin and Ethereum ETFs that experienced record outflows in October and November amid the recent market slump.

The strong performance is underpinned in part by the 5-7% staking rewards on offer. 

US SOL ETF flows (Source: Farside Investors)

Data from Farside Investors shows that since Nov. 10, the funds have only seen net daily outflows on Nov. 26, when $8.2 million left the investment products. 

The funds resumed their inflows streak in the latest trading session, with investors injecting $5.3 million into the ETFs. On the day, Grayscale’s GSOL led the charge with $4.3 million inflows. Fidelity’s FSOL was the only other SOL ETF to see inflows on the day, with $2.4 million entering its reserves. 

21Shares’ TSOL was the only fund to record outflows yesterday, with $1.4 million leaving its reserves. This fund was also responsible for breaking the funds’ net daily inflows streak the day before, after investors withdrew $34.4 million from the fund on the day.

SOL Price Trades In A Downtrend

Despite the continued inflows for SOL ETFs, the altcoin that the funds track has seen its price slide in recent weeks. Over the past month, SOL’s price has plummeted over 28%, coinciding with the broader crypto market pullback.

SOL daily chart (Source: GeckoTerminal)

Data from GeckoTerminal shows that SOL trades in a medium-term downtrend. Technical indicators such as short-term Exponential Moving Averages (EMAs), the Moving Average Convergence Divergence (MACD), and the Relative Strength Index (RSI) show that bears still have a tight grip on the altcoin’s price. 

However, SOL is attempting to break above the upper boundary of the descending price channel. A breach of this barrier could lead to a bullish shift in momentum and strength for SOL.