Solana's native token, SOL, surged to $161 following news of the launch of its first exchange-traded fund (ETF) featuring staking capabilities. The excitement was tempered by concerns regarding weak institutional demand, ongoing token unlocks, and competition from other assets like Bitcoin and Ethereum. The ETF provider REX Shares partnered with Osprey Funds to create a C-corporation approach, differing from typical spot ETF structures and raising questions about tax efficiency. Despite an initial 7% price increase, SOL adjusted to around $157, revealing limited enthusiasm from investors compared to substantial assets managed by other crypto trusts. Furthermore, upcoming staking unlocks worth $585 million and significant sell-offs from popular Solana decentralized applications contribute to a challenging environment for sustained price growth. Although Solana might enjoy a brief competitive edge, indications suggest that substantial institutional interest in the ETF is unlikely to elevate SOL towards the $200 mark due to these ongoing pressures and competition.

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