Recent U.S. regulatory filings indicate a growing and diversified base of buyers for Bitcoin exchange-traded funds (ETFs), signaling increased institutional adoption despite ongoing market turbulence.
Bitcoin Declines Amid Broader Crypto Market Slump
The sluggish performance in the cryptocurrency market persisted on Tuesday, dragging Bitcoin (BTC) closer to multi-month lows. By early afternoon trading, BTC was priced at $93,600, marking a 2% decline over the past 24 hours and a 10% drop over the past week.
The broader crypto market, as measured by the CoinDesk 20 Index, also faced headwinds, sliding 4% in the same timeframe. A significant drag on the index came from Solana (SOL), which suffered a steep 16% decline. The downturn follows a turbulent weekend in the memecoin sector, culminating in a high-profile rug pull involving Argentine President Javier Milei. SOL has now erased all gains it made following Donald Trump’s election, plunging 35% over the past month.
Bitcoin’s Long-Term Prospects: $500K Still on the Table
Despite the recent volatility, Standard Chartered’s Geoff Kendrick remains bullish on Bitcoin’s long-term potential. He has previously predicted that BTC could surpass $500,000 by the time Donald Trump leaves office.
In a research note on Tuesday, Kendrick pointed to recent 13F filings, which track institutional investments in spot Bitcoin ETFs, as a reason for optimism. According to him, the investor profile has evolved from retail traders to hedge funds and now includes banks and sovereign wealth funds. Notably, Goldman Sachs increased its stake in Bitcoin ETFs, and Abu Dhabi made its first Bitcoin ETF purchase.
Looking ahead, Kendrick expects further participation from long-term institutional investors, particularly sovereign wealth funds. “Going forward, we anticipate more long-term, buy-and-hold money entering the market, with Abu Dhabi’s investment likely marking the beginning of increased sovereign involvement,” he stated.
Solana Faces Heavy Selling Pressure
The downward pressure on Solana extended beyond its native token, affecting key ecosystem projects. Decentralized exchange tokens like Raydium (RAY) and Jupiter (JUP) saw double-digit declines, while liquid staking service Jito (JTO) dropped 7%, with all of them down more than 30% from their Friday highs.
The turmoil stems from the fallout of the LIBRA token, a scandalous pump-and-dump scheme that roiled the Solana ecosystem. LIBRA launched on Friday, briefly reaching a $4 billion market cap following an endorsement from President Milei on X (formerly Twitter), in which he claimed the project would support small and mid-sized businesses in Argentina. However, the token rapidly lost almost all its value after insiders allegedly cashed out $100 million, leading Milei to retract his support. The Argentine president now faces fraud allegations and potential impeachment. Additionally, Solana-based DEX Meteora co-founder Ben Chow resigned after being implicated in the launch.
“This is yet another troubling episode from Solana’s memecoin sector,” said Alex Thorn, head of firmwide research at Galaxy, in a Tuesday report. He noted that sentiment toward memecoins has been deteriorating since the launch of the controversial TRUMP token.
Implications of the Upcoming Solana Unlock Event
Adding to market uncertainty, Solana is set for a significant token unlock event that could further pressure its price. Estimates vary, but one hedge fund analyst forecasts that approximately 15.725 million SOL—worth around $2.5 billion at current prices—will be released into circulation over the next three months. A substantial portion of these tokens originates from the FTX estate holdings.
“If an unlock of this scale happens, it could significantly increase SOL’s circulating supply and impact market dynamics,” Tokenomist analysts stated in an X post. “Historically, large token unlocks have led to heightened price volatility. However, the exact scale and timing remain undisclosed by any official entity.”
As investors navigate ongoing price swings, the long-term trajectory of Bitcoin and Solana remains a focal point for market participants, with institutional involvement continuing to shape the future of digital assets.
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