Solana Drops 7.8% Ahead of REX-Osprey SOL + Staking ETF Launch

Solana (SOL) plunged 7.84% over the past 24 hours, falling from $157.42 to $145.08 as of 20:03 UTC on July 1, 2025, significantly underperforming the broader crypto market, which declined just 0.24% based on the CoinDesk 20 Index.

The sell-off comes just one day before the highly anticipated debut of the REX-Osprey SOL + Staking ETF (ticker: SSK) on July 2. This marks the first U.S.-listed ETF offering direct exposure to Solana’s token along with staking rewards. Unlike traditional spot ETFs, this fund is designed to let investors passively earn Solana’s proof-of-stake yield, providing more comprehensive exposure to the asset.

Approximately 80% of the fund's holdings will be in SOL, with about half of those tokens actively staked. Structured under the Investment Company Act of 1940, the ETF aims to offer stronger investor protections compared to products registered under the 1933 Act, potentially encouraging greater institutional participation.

Despite the bullish implications, SOL faced strong selling pressure on Monday. Technical indicators show clear resistance at $157.42, with the largest volume spike of over 1.57 million units occurring at 06:00 UTC and price rejection near $151.50. Support appeared around $146.55 during the 14:00 UTC hour, suggesting accumulation interest. By the session’s close, SOL hit a low of $145.08, forming a descending channel with lower highs and lows throughout the day.

Market analysts view the ETF launch as a potential catalyst for long-term adoption and institutional inflow. Firms like Grayscale, Bitwise, and VanEck are also pursuing SOL ETF offerings, signaling growing interest in Solana’s ecosystem. However, near-term volatility remains as traders react cautiously to the news.