By Chris Hollingworth 
Solana (SOL) has experienced a notable price surge today, driven by a significant recovery in the wider cryptocurrency market. According to data from Cointelegraph Markets Pro and TradingView, SOL is currently trading at around $134, marking an increase of over 6% in the past 24 hours. This rebound represents a roughly 20% recovery from its recent low of around $112 recorded on March 11.
The surge in SOL’s price today can be attributed to several key factors, including the launch of the first Solana futures exchange-traded fund (ETF) and the liquidation of approximately $18 million in short positions over the last 24 hours. Analysts are now eyeing a target of $220 for SOL based on its strengthening technical indicators.
The debut of the Solana futures ETF by Volatility Shares has injected fresh optimism into SOL investors. This marks the first-ever introduction of Solana futures ETFs, with Volatility Shares set to launch two ETFs: SOLZ, which will track Solana futures, and SOLT, offering 2x leveraged exposure.
Key details from the launch include Volatility Shares, a U.S.-based investment firm, unveiling the first Solana futures ETFs on Thursday, March 20. The Securities and Exchange Commission (SEC) filing confirms that trading for the Solana ETF (SOLZ) and Volatility Shares 2X Solana ETF (SOLT) will commence on the same day. SOLZ will carry a management fee of 0.95%, while SOLT traders will incur a 1.85% charge.
The introduction of these ETFs mirrors the trend seen with Bitcoin and Ethereum futures products, signaling increasing institutional acceptance and providing easier entry points for traditional investors. Market experts believe that the launch of these funds could pave the way for the approval of a spot Solana ETF, as various issuers like Grayscale, Franklin Templeton, and VanEck have applied for spot Solana ETFs pending SEC approval.
Analysts view this development as a positive regulatory step that could bolster confidence not only in Solana but also in the broader cryptocurrency market. The potential approval of a spot Solana ETF is seen as a significant milestone, with Bloomberg ETF analysts estimating a 75% likelihood of approval by the end of the year.
In addition to the ETF launch, SOL’s price surge is fueled by substantial liquidations in the derivatives market. Data from CoinGlass reveals that over $359 million worth of leverage positions were liquidated in the crypto futures market in the last 24 hours, with $258.7 million stemming from short liquidations. This influx of liquidations, particularly in short positions, can further drive the rally as bearish traders’ positions are automatically closed when the price surpasses their liquidation threshold.
Moreover, SOL’s funding rates have seen a positive flip from -0.0050% on March 19 to 0.0049% on March 20, indicating a rise in demand for long positions and heightened trader interest in SOL.
With these recent developments propelling SOL’s price higher, market participants are closely monitoring whether the momentum can sustain a continued upward trajectory.
