Institutions continue to stack more crypto either directly or through ETFs. Recently, JPMorgan Chase and Dartmouth College released their new Solana ETF holdings to the public.
With the crypto market structure bill passing the Senate Banking Committee, adoption can only go higher. However, the bill has passed the most critical level but has yet to be signed into law.
Institutional accumulation of Solana ETFs
As per the latest Q1 13F filing, JPMorgan Chase disclosed that its Solana ETF position was at $523K. The banking institution was accumulating Bitwise’s Solana Staking ETF.
Dartmouth College added to their SOL ETF stake, but their holdings in Bitcoin [BTC] and Ethereum [ETH] remained unchanged. The filing revealed the institution added $3.30 million, taking their total crypto exposure to $14.50 million.
These positions meant that Bitwise’s Solana Staking ETF was gaining more traction. It is the largest, with total inflows hitting $900 million. More than $677 million has flowed in post-launch, while the ETF bought $223 million at seed to start operationalizing.
On a larger scale, all SOL ETFs are seeing a positive inflow streak in May. This month, more than $90 million has been bought. The largest inflow of $26.57 million occurred on the 12th of May.
In total, the eight products have absorbed more than $1.05 billion in capital as of press time. The inflow was equivalent to 1.93% of the altcoin’s market cap. This indicated the products were appealing to investors.
More importantly, liquidity was flowing into Solana. As per SolanaFloor, Circle minted another $500 million USDC in the past 24 hours. This showed demand for crypto exposure through stablecoins on SOL.
As the inflows surge, the price of SOL remains about 70% below its all-time high of $297.
Can SOL break above $98?
On the charts, Solana was trading in a sideways market between $78 and $98, a $20 range. Since February, the altcoin has been in this consolidation, with $88 as the recent turning point.
The altcoin is trading above the Ichimoku Cloud, adding weight to a potential breakout. However, the Choppiness Index (CHOPP) is at 43 and rising, indicating the sideways movement may extend.
Only breaking above $98 could signal a shift in market structure. That would take SOL’s price to $107 or even $117. However, the level has been rejected twice during this period.
Conversely, a failure to breach the resistance at $98, the price would return to the mid-range at $88. More selling pressure could result in a full retracement at the floor price of $78.
Final Summary
- JPMorgan, among other institutions, is accumulating Solana ETFs, particularly that of Bitwise.
- Solana’s price action is trading in a sideways range, as CHOPP readings suggest the movement could extend.
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