Solana ETF Launched in Canada: Can it Lift SOL Price from 50-Day Bottom?

Solana (SOL) price has tumbled to an 100-day bottom of $130 on Friday, June 21, but the recent launch of the Solana Exchange Traded Fund (ETF) in Canada has drawn investors attention. Can it lift SOL price from 50-day lows?

Solana ETF Debuts in Canada

The Solana ETF, trading under the symbol QSOL, will provide investors with exposure to SOL cryptocurrency. Additionally, it will offer the chance to benefit from the native staking yields of the Solana blockchain, which are projected to be between 6% and 8%. This presents a compelling opportunity for those looking to earn passive income while supporting the security and stability of the Solana network.

The QSOL filing is a preliminary prospectus submitted to securities regulatory authorities in all Canadian provinces and territories, except Quebec. Upon approval, QSOL will offer exposure to SOL cryptocurrency and its daily price movements in US dollars.

Coinbase Custody and Tetra Trust will serve as custodians, with Coinbase Custody providing exclusive institutional staking infrastructure for the Solana fund. This arrangement ensures enhanced security and reliability for investors entering the crypto space through a regulated investment vehicle.

Canada: Leading in Crypto Innovation

Canada has been at the forefront of crypto ETF approvals, having launched the world’s first spot Bitcoin and Ethereum ETFs in February and April 2021.

The potential approval of QSOL could lead to the introduction of financial products based on lesser-known cryptocurrencies, promoting diversity and inclusion in the traditional financial market. It could also inspire other countries, including the United States, to consider similar approvals, thereby boosting the global legitimacy and acceptance of cryptocurrency.

3iQ’s plan to launch the first Solana ETF in Canada represents a significant milestone, potentially transforming the landscape of crypto investments and paving the way for new financial innovations.

How will Solana ETF Impact SOL Price Action?

Despite the bullish news headlines surrounding the Solana ETF launch in Canada, SOL price has remained  stuck in its month-long downward trajectory.  Considering that the Canadian crypto market is a relatively smaller realm relative to US and Europe, investors do not expect the Solana ETF launch to trigger major price upside this week.

However, this development remains a positive omen for the global adoption and extension regulatory clarity beyond just Bitcoin (BTC) and Ethereum (ETH).

In terms of short-term price reaction, chart below shows that after declining 31.18% in the last 30-days Solana price is now on the verge of losing the $130 support.

As depicted by the lower-limit Bollinger band technical indicator, Solana’s next major support buy wall now lies at the $127 territory.

Failure to hold that critical psychological support could send SOL into a rapid tailspin toward $120 in the days ahead.