Solana Falls 8% Ahead of Launch of First U.S. Staking ETF

Solana’s price slid nearly 8% on Tuesday despite increasing institutional interest and anticipation for a groundbreaking U.S.-listed ETF offering staking rewards.

Over the past 24 hours, SOL dropped 7.84%, trading at $145.08 as of 20:03 UTC on July 1, 2025, according to technical analysis from CoinDesk Research. By contrast, the broader crypto market, represented by the CoinDesk 20 Index, dipped only 0.24% during the same period.

SOL’s decline comes just a day before a significant milestone for the Solana ecosystem: the launch of the REX-Osprey SOL + Staking ETF.

Scheduled to debut on July 2, 2025, the REX-Osprey SOL + Staking ETF (ticker: SSK) will become the first U.S.-listed exchange-traded fund to offer direct exposure to Solana’s native token while enabling investors to earn staking rewards. Unlike traditional crypto ETFs that solely track price movements, this fund allows holders to passively benefit from Solana’s proof-of-stake rewards mechanism.

About 80% of the ETF’s assets will be invested in SOL, with roughly half of those tokens actively staked. The fund is structured under the Investment Company Act of 1940, widely viewed as offering stronger regulatory protections and potentially smoother approval processes than the older 1933 Act framework. This structure could bolster confidence among institutional investors and enhance broader participation.

Market analysts view the ETF’s launch as a significant step in cementing Solana’s credibility with U.S. financial institutions. By combining yield generation with token exposure, it offers a more comprehensive investment vehicle than standard spot-tracking funds. Industry insiders suggest this innovation could pave the way for long-term adoption, especially as other asset managers, including Grayscale, VanEck, and Bitwise, pursue similar Solana ETF products.

Still, despite the excitement around the pending ETF, SOL came under widespread selling pressure on Monday, highlighting investor caution ahead of the launch.

Technical Analysis Highlights:

• SOL fell $12.34 in the last 24 hours, declining from $157.42 to $145.08—a drop of 7.84%, with a trading range spanning $12.34.
• Strong resistance was encountered at $157.42 in the first hour of trading, leading to sustained selling pressure throughout the session.
• The heaviest trading activity occurred during the 06:00 UTC hour, with volume exceeding 1.57 million SOL and price rejection near $151.50.
• Support emerged around $146.55 during the 14:00 UTC hour, accompanied by elevated volume, signaling possible accumulation at that level.
• In the session’s final hour, SOL slipped further from $146.31 to $145.08, marking the day’s lowest price.
• Price movements formed a clear descending channel, defined by a pattern of lower highs and lower lows during the entire trading period.