TradingKey – Hong Kong has approved its first Solana spot ETF, but why is SOL falling instead of rallying?

On Wednesday, October 22, according to the Hong Kong Economic Times, the Hong Kong Securities and Futures Commission (SFC) officially approved the first Solana (SOL) spot ETF — marking the city’s third crypto spot ETF and the first of its kind in Asia. Back in April 2024, Hong Kong had already greenlit spot ETFs for Bitcoin and Ethereum.

Despite the potential for increased buying interest, SOL failed to rally. Over the past 24 hours, SOL attempted to break through the $200 level but fell short, slipping 0.17% to $184.

SOL Price Chart – Source: TradingView.

Last night, Bitcoin briefly surged past $110,000, but the rally quickly faded, triggering a broader pullback across the crypto market. SOL was dragged down in the correction, despite the ETF approval.

Market participants are increasingly focused on how the U.S. Securities and Exchange Commission (SEC) will respond to a potential SOL spot ETF. As the world’s largest financial hub, U.S. approval could trigger global spillover effects and attract significant capital.

However, the U.S. government remains in shutdown, delaying the SEC’s review process and casting uncertainty over Solana’s ETF prospects in the American market.