After a prolonged period of volatility and investor anxiety, bullish momentum has returned with force to the Solana market. The catalyst is a one-two punch of major developments from the traditional finance sector, sparking a significant rally. Market participants are now questioning whether this marks a sustainable reversal for the Ethereum competitor or merely a temporary spike.
Regulatory Green Light for New ETF
Adding concurrent pressure is a key regulatory approval. The NYSE Arca has granted Franklin Templeton authorization to list its Solana-focused exchange-traded fund under the ticker “SOEZ.” This move brings another heavyweight asset manager into direct competition with established players like Bitwise and Fidelity.
Franklin Templeton is entering the fray aggressively, particularly on fees. The firm has set an expense ratio of 0.19%, which it will waive entirely for an initial period, effectively declaring a price war. This official sanction is seen as solidifying Solana’s status as a core “blue-chip” crypto asset alongside Bitcoin and Ethereum.
Vanguard Reverses Its Crypto Stance
In a landmark shift, investment management titan Vanguard has opened its platform to cryptocurrency ETFs. For years, the firm was considered a staunch opponent of digital assets, but that position has undergone a radical reversal. As of December 2, the ban has been lifted, granting the firm’s approximately 50 million clients access to trade approved spot crypto ETFs, which include products tracking Solana.
Should investors sell immediately? Or is it worth buying Solana?
This decision sends a powerful signal to the broader market. It dramatically lowers the barrier to entry for conservative investors and registered investment advisors (RIAs), as direct coin ownership is no longer a prerequisite. Analysts identify this policy change as a primary driver behind the sudden shift in sentiment, opening a theoretical pathway for substantial institutional capital to flow into the ecosystem.
Market Mechanics Fuel the Advance
The market’s reaction was swift. SOL’s price breaking through key resistance levels triggered a classic short squeeze. Bearish traders positioned for further declines were caught off guard, leading to millions in liquidations and adding further fuel to the upward move.
Fund flow data tells a compelling story. Following a phase of outflows, Solana-related ETFs are once again recording significant net inflows. While Bitwise remains the dominant provider for now, these new institutional channels are delivering much-needed liquidity. Furthermore, on-chain metrics indicate rising network usage, supported by new applications in areas like prediction markets, providing fundamental strength to the recovery narrative.
With a current price of $141.65, SOL has reclaimed ground above the psychologically important $140 level. However, it still faces considerable work to fully reverse its longer-term downtrend, given its monthly decline of over 24%. The bulls’ next likely target is the region around the 50-day moving average.
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