Analyst Turn Bullish with $400 SOL Target as Hong Kong Approves First-Ever Solana ETF in Asia

Hong Kong has officially approved the region’s first-ever Solana ETF in Asia. This comes as an analyst projected that the SOL price could reach $400.

Analyst Eye $400 SOL Price as Hong Kong Approves First Solana ETF in Asia

A crypto analyst shared that the SOL price is within its “sweet zone,” with ideal entry levels still below $200. They  projected targets between $300 and $400, noting that the current risk-to-reward ratio remains highly favorable for traders

This projection follows Hong Kong Securities and Futures Commission (SFC) authorization of the first-ever Solana ETF in Asia. The ETF will be listed on October 27, with 100 units per lot and a minimum investment of roughly $100. This will allow investors to gain direct exposure to the altcoin’s market performance without owning the asset itself.

The management fee is set at 0.99%, while custody and administrative costs could reach an additional 1%. This will give the fund an estimated annual expense ratio of 1.99%. Notably, this product joins ChinaAMC’s lineup of spot Bitcoin and Ethereum ETFs.

This new launch also comes as Solana-linked ETPs have seen incredible growth. SOL investment products attracted $706 million in weekly inflows. This pushed its total assets under management to a record $5.1 billion.

Furthermore, it follows Bitwise, edging closer to launching its own Solana ETF (BSOL) in the United States. The company recently sent the SEC its fifth amendment, which reduced management fees to just 0.20% and added staking capabilities. James Seyffart, a Bloomberg analyst, called the action “slashing fees right to the bottom level from the get-go.”

BTC and ETH Performance in the First Week of Asia ETF Launch

Since its launch in January 2024, Asia’s Bitcoin ETF has experienced consistent inflows and robust institutional interest. Despite brief declines, the price mainly stayed range-bound.

Despite more than $1 billion in trading volume, Ethereum’s ETF launch in July 2024 also saw a roughly 7.8% decline in the first three days of trading.

Momentum around the token extends beyond ETFs. Earlier this month, DeFi Development Corp launched Japan’s first Solana Treasury firm in partnership with Superteam Japan. The initiative, part of a “Treasury Accelerator Program,” aims to help institutions establish and manage Solana-based treasuries.

Additionally, Gemini added a Solana Edition Credit Card to further boost the momentum.  This allows users to automatically stake rewards for extra yield while earning up to 4% cashback in SOL on qualified purchases.