*SOL pumped 7% on ETF news but there's a catch... 🤔
Monday was wild for SOL holders but let me break down what actually happened...
SOL hit $161 after "ETF" announcement, now back to $151
But this isn't your typical ETF. It's more like a fancy corporate wrapper.
And the numbers behind it? Not exactly bullish
*The "ETF" reality check
What REX-Osprey launched:
-Taxable C-corporation structure (not real ETF)
-Bypasses SEC approval process
-Double taxation on dividends
Why the quotation marks? This isn't like BTC/ETH spot ETFs. It's basically a corporate investment vehicle with staking.
Market reaction: Initial pump to $161, then reality set in.
*Institutional demand? What demand?
Grayscale comparison is brutal:
-Solana Trust (GSOL): $75M assets after 2+ years
-Ethereum Trust (ETHE): $10B before ETH ETF launch
Translation: Institutions just aren't that interested in SOL yet.
Even with staking yields, the demand gap is massive.
*Supply pressure incoming
What's working against SOL:
-$585M worth of staking unlocks next 2 months
-Pump.fun dumped $404M SOL on exchanges in 2025
-Network revenue down 90% since January
Reality check: Supply increasing while demand stays weak.
*Futures traders staying cautious
Funding rates tell the story:
-Still below 10% threshold despite 12.5% pump
-No excessive bullish leverage demand
-Traders not convinced this rally has legs
Current price: $157 (still 47% below $295 ATH)
*My honest take
This "ETF" news was overhyped. Corporate structure with double taxation isn't exactly institutional-grade infrastructure.
The pump was predictable but fundamentals haven't changed:
-Weak institutional demand
-Heavy supply pressure
-Network activity still declining
Bottom line: Until we see real spot ETF approval or network revival, these rallies probably won't stick.
