- Canada-based Sol Strategies has raised more capital for its SOL investments.
- A crypto VC predicted a bullish outcome for SOL if ETF is approved.
Solanas [SOL] MicroStrategy’s equivalent, Sol Strategies, secured a CAD$25 million (approximately USD$17.4 million) credit to purchase SOL tokens and renew its staking services. Part of the statement from the Canadian-based company read,
“The company plans to deploy these tokens across its core focus areas within the Solana ecosystem, including decentralized finance protocols, validator operations and strategic liquidity provision to emerging Solana-based projects.”
SOL ETF expectations
Institutional interest in the Layer-1 platform could explode in the coming months under US influence SOL ETF expectations.
According to Andrew Kang of crypto VC Mechanism Capital, SOL was relatively undervalued compared to network growth, ahead of the likely ETF approval in the first quarter.
Additionally, Kang cited a lack of grayscale-like supply as key catalysts for SOL’s value. He stated,
“Almost one particular SOL ETF has been approved this year, if not in the first quarter, with approval deadlines in January-March. No grayscale overhang like with ETH”
At the time of writing, bettors on the prediction site Polymarket estimated a 74% chance of approval of the SOL ETF in 2025.
Source: Polymarkt
However, SOL faced short-term headwinds from the macro environment. Recent US economic data reinforced persistent inflation, which could derail the Fed’s 2025 rate cut and hit risky assets.
The markets tumbled after the macro update, but crypto dumped the hardest. SOL gave back recent gains and erased the entire early January recovery.
It fell 13% and fell below $200 at the time of writing. The next crucial support levels were at $190 and $175.
Source: SOL/USDT, TradingView