Franklin Templeton Files S-1 Registration with the SEC for a Spot Solana (SOL) ETF

On February 21st, Franklin Templeton officially filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for a spot Solana ($SOL) exchange-traded fund (ETF).

Crypto Market Sees Outflow As Bitcoin Price Drops 3%, Triggering Altcoin Sell-Off

Bitcoin price plunged over 3% on Friday, briefly touching the $95,000 floor, as the crypto market witnessed a notable outflow. This selling momentum quickly spread to the altcoin market, with top assets like Ethereum and Solana registering a 4% drop.

Amid this broader market downtrend, Solana (SOL) saw a significant development as Franklin Templeton officially filed an S-1 registration with the SEC for a spot Solana ETF. Here’s a closer look at these key highlights.

Franklin Files S-1 for Spot Solana (SOL) ETF

On February 21st, Franklin Templeton filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for a spot Solana ($SOL) exchange-traded fund (ETF). This move signals growing institutional interest in Solana (SOL) as a leading blockchain asset, following in the footsteps of Bitcoin and Ethereum spot ETFs.

If approved by the SEC, this ETF will provide investors with direct exposure to Solana’s price movements, further legitimizing its place in the digital asset ecosystem. However, at the time of writing, the Solana price remained under the pressure of a broader market correction, showing a 4.3% loss to trade at $168.

Bear Traps Sets Solana Price For Major Reversal

For over a month now, the Solana price has been sharply correcting from a $295 top to currently trade at $167, showing a 43% loss. On February 18th, this falling price gave a decisive breakdown from the $175 neckline of a double top reversal pattern.

This technical setup is characterized by an M-shaped reversal, indicating intense overhead supply. The 50- and 100-day EMA slopes nearing a bearish crossover could accelerate the selling pressure in the market for a prolonged correction. If the pattern holds, the post-breakdown fall could plunge the asset 33% down to hit $112 support.

However, with broader market consolidation, the SOL price struggles to follow up on this breakdown, signaling a weakness in sellers’ conviction. Thus, a potential jump above the $175 level marks the previous breakdown as a bear trap.

This failed breakdown will invalidate the bearish momentum and bolster buyers for a renewed recovery.