Solana Dips 7.5% After BlackRock Rules Out Immediate ETF Launch

Solana (SOL) reversed its uptrend in the last 24 hours after BlackRock, the leading American multinational investment company, confirmed it will not launch a Solana exchange-traded fund (ETF) in the near future. BlackRock’s CIO of ETF and Index Investments, Samara Cohen, confirmed this during a Bloomberg interview on July 29.

BlackRock CIO of ETF and Index Investments Samara Cohen discusses the iShares Ethereum Trust ETF (ETHA) and expects we’ll see allocation of crypto ETFs in model portfolios by the end of this year and into 2025 https://t.co/5UOLwIRWHL pic.twitter.com/rYqpym7Wqg

— Bloomberg Crypto (@crypto) July 29, 2024

Cohen noted her company’s current lack of interest in a Solana ETF, despite projecting an increase in the allocation of crypto ETFs in model portfolios by the end of this year and into 2025.

Notably, Cohen’s comments triggered a selloff in the Solana market, which saw the surging crypto halt its upward movement and immediately reverse. SOL, which many analysts predicted was heading to $200 in the current rally, reversed at $193.89 after climbing above the 0.786 Fibonacci resistance on the daily chart.

The reversal plunged SOL below the 0.786 Fibonacci level, causing the altcoin to lose 7.5% of its value in less than 24 hours. SOL dropped to $180.34 at the time of writing, forming a classic trend reversal candle on the daily chart, according to data from TradingView.

SOLUSD Daily Chart on TradingView

Solana’s recent price action suggests disappointment among investors, who had become hopeful that asset managers might pursue more ETFs after the SEC approved spot Ethereum ETF applications. This news has momentarily dissipated the recent bullish momentum that saw SOL surge over 60% in the past three weeks, climbing above multiple resistance levels.

Meanwhile, Cohen believes that the recent outflows from Ethereum ETFs are due to investors seeking maximum access points. Hence, the trading volumes reflect that Ether accounted for about 40% of new assets but 25% of trading volume because of outflows from proxy investment vehicles.

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