Solana Climbs 4% as Canada Launches First Spot ETFs, Network Inflows Surge
Solana (SOL) is showing strong upward momentum, trading around $130 with a gain of nearly 4% in the past 24 hours. This rally is significant
Quick overview
- Solana (SOL) is experiencing strong upward momentum, trading around $130 with a nearly 4% gain in the past 24 hours, driven by the launch of spot Solana ETFs in Canada.
- The Ontario Securities Commission has approved several Canadian asset managers to launch these ETFs, providing North American investors with direct access to SOL.
- Ark Invest has shown increased institutional interest in Solana by investing approximately $4.95 million into the 3iQ Solana Staking ETF, indicating confidence in its long-term prospects.
- On-chain data reveals a significant rise in Solana staking activity, with deposits increasing by $270 million, further strengthening its fundamentals and competitive position in the DeFi space.
Solana (SOL) is showing strong upward momentum, trading around $130 with a gain of nearly 4% in the past 24 hours. This rally is significantly fueled by the historic launch of the first spot Solana Exchange Traded Funds (ETFs) in Canada, coupled with a notable surge in network inflows and staking activity.
Canada’s Spot Solana ETF Marks Historic Milestone
Approved by the Ontario Securities Commission, many Canadian asset managers including Purpose Investments, 3iQ Corp, Evolve Funds, and CI GAM will be launching spot Solana ETFs on the Toronto Stock Exchange (TSX), in a ground-breaking event for the Solana ecosystem. Starting on April 16–17, these products allow investors in North America to directly access SOL via controlled investment vehicles.
“With the growing adoption of Solana’s ecosystem in DeFi, NFTs, and gaming, we believe this ETF will bridge a critical gap for Canadian investors seeking safe, compliant access to high-growth digital assets,” Purpose Investments CEO Som Seif underlined on the strategic timing of the launch.
Given Canada’s first approval of spot Bitcoin and Ethereum ETFs before comparable products debuted in the United States, this evolution reflects the nation’s past leadership in cryptocurrencies ETFs.
Institutional Interest in SOL Surges as Ark Invest Makes Major Moves
Pouring around $4.95 million into the recently listed 3iQ Solana Staking ETF (SOLQ.U) via its ARK Fintech Innovation ETF (ARK Fintech Innovation ETF) and ARK Next Generation Internet ETF (ARK Next Generation Internet ETF), Cathie Wood’s Ark Invest has shown great conviction in Solana’s prospects. Following a prior acquisition of 500,000 SOLQ.U shares at $5.2 million, this current investment indicates increasing institutional faith in Solana’s long-term viability.
Especially, these purchases line up with Ark Invest selling shares of its ARK 21Shares Bitcoin ETF (ARKB), so indicating a purposeful reallocation toward other layer-1 blockchain investments and lessening of its exposure to Bitcoin.
SOL/USD Technical Analysis Points to Possible 40% Upside
On the 4-hour chart, the SOL/USD price action has generated what analysts call a typical inverse head and shoulders pattern. Usually indicating considerable upward potential, this bullish reversal pattern consists in three troughs below a common neckline resistance with the middle dip being the deepest.
Technical analysts think this pattern might boost Solana into a price objective of about $190, or a 40% rise from current prices. Supporting this optimistic view, SOL has recovered its 200-4H exponential moving average as support from momentum indicators and relative strength index (RSI) levels showing opportunity for additional gain without quick signals of overbought circumstances.
While resistance around $133.50-133.60 marks the next challenge for bulls, the $125–127 range has become clear as a significant support zone that has effectively resisted several negative efforts.
$270 Million in New Staking Deposits Strengthen Fundamentals
With deposits rising by 2 million SOL (valued at almost $270 million) in just four days, on-chain data reveals a significant increase in Solana staking activity. From 383.1 million to 385.1 million, total staked SOL has risen to show great investor conviction and efficiently lower circulation supply as demand rises.
This increase in staking activity coincides with more general favorable changes for Solana’s DeFi ecosystem. After a 16% increase over seven days, the network has taken back leadership in distributed exchange (DEX) activity, outperacing Ethereum. Solana’s total value locked (TVL) has risen by 12% to $7.08 billion, therefore strengthening its standing as a major rival to Ethereum.
Galaxy Research Proposes New Inflation Governance Model
Complementing the encouraging advancements, crypto research company Galaxy Research has proposed “Multiple Election Stake-Weight Aggregation” (MESA) to overhaul Solana’s inflation control mechanism. The idea allows validators to vote on several deflation rates concurrently, therefore addressing past difficulties in establishing consensus on inflation levels.
MESA would provide a more market-driven approach whereby validators may express preferences throughout a spectrum and the outcome would be decided by a weighted average of these votes instead of conventional binary voting systems. This proposal follows the March rejection of Solana Improvement Document 228 (SIMD-228), which failed the necessary 66.67% criterion even with 61.39% acceptance.
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