As the financial landscape experiences a paradigm shift, the launch of a Solana Exchange-Traded Fund (ETF) seems increasingly imminent. This potential development is set against a backdrop of evolving regulatory and market dynamics that favor digital asset products. Recently, a notable step forward was made as the Cboe BZX Exchange submitted four separate applications for spot Solana ETFs. These proposals were put forth by prominent players in the financial industry, including VanEck, 21Shares, Bitwise Asset Management, and Canary Capital.
SOL ETF Approval Highly Likely: Industry Insights
Industry experts are showing optimism regarding the approval of Solana ETFs. Nate Geraci, President of the ETF Store, expressed confidence in these regulatory developments. He stated, “The engagement of the SEC with issuers regarding this product is a positive sign.” Geraci believes that a Solana ETF is likely to receive approval by the end of next year. This optimistic outlook is further fueled by the anticipated resignation of SEC Chairman Gary Gensler, effective January 20, 2025, which is expected to create a more favorable environment for digital asset innovation.
SEC Engagement and Progress
Adding to the hopeful narrative, Eleanor Terrett from Fox Business reported that discussions between the SEC and issuers aiming to launch a SOL spot ETF are making progress. The SEC is actively engaging in S-1 application processes. Although this does not ensure a definitive approval, there is a “good chance” that some 19b4 filings may soon emerge, according to individuals closely involved with the matter. The potential approval in 2025 remains uncertain, yet many Solana champions remain hopeful, especially considering the upcoming leadership change at the SEC.
Increasing Optimism Around SOL ETF
Matthew Sigel, VanEck’s Head of Digital Asset Research, is another proponent of the Solana ETF timeline. He expressed, “I think there’s a very good chance that a Solana ETF will be trading by the end of next year.” This sentiment is echoed by Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, who believes that the approval of a Solana ETF is more probable under a Trump administration.
Solana’s Market Performance
In the context of market performance, Solana has recently reached new heights. The cryptocurrency achieved an all-time high, trading at $264.31 on Coinbase Inc., marking an 18% increase over the past week. This strong performance is part of a broader trend in 2024, where Solana has risen by 160% since the beginning of the year. With a current market capitalization of $123 billion, it accounts for approximately 4% of the total cryptocurrency market. Market analysts remain optimistic about Solana’s continued growth, setting a new price target of $400, surpassing its previous all-time high of $260.
The potential approval and launch of a Solana ETF could significantly impact the digital asset market, ushering in a new era of opportunities for investors and enhancing the credibility and adoption of digital currencies.
