As the landscape of regulatory and market dynamics continues to shift in favor of digital asset products, the potential launch of a Solana Exchange-Traded Fund (ETF) appears to be approaching rapidly. Recently, Cboe BZX, a prominent equity exchange, submitted four applications for spot Solana ETFs. These proposals come from notable industry players including VanEck, 21Shares, Bitwise Asset Management, and Canary Capital.
Significance of the Applications for Solana ETF
According to James Seyffart, a Bloomberg Intelligence ETF analyst, the submission of these applications represents a significant advancement towards the approval of a Solana ETF. If the U.S. Securities and Exchange Commission (SEC) accepts these proposals, the agency’s final decision could be expected by early August 2025. This timeline is crucial for investors and market participants who are eagerly anticipating the introduction of this innovative financial product.
SOL ETF Approval Highly Likely: Nate Geraci
Nate Geraci, President of the ETF Store, has expressed considerable optimism regarding the approval prospects for Solana ETFs. Geraci remarked, “It appears that the SEC is engaging with issuers regarding this product, which is a positive sign.” He is confident that Solana ETFs will likely receive approval by the end of next year at the latest. This optimism is further bolstered by the announcement of SEC Chairman Gary Gensler’s resignation, effective January 20, 2025, which has fueled speculation about a potentially more supportive regulatory environment for digital assets.
Increasing Optimism Around SOL ETF
Eleanor Terrett of Fox Business recently shared insights on social media, indicating that discussions between SEC staff and issuers seeking to launch a SOL spot ETF are “progressing.” The SEC is now engaging with S-1 applications, a pivotal step in the approval process. Although this development enhances the likelihood of approval in 2025, it does not guarantee that the SEC will ultimately approve the product. Nonetheless, many proponents of Solana remain optimistic, especially in light of the upcoming leadership change at the SEC.
Adding to the growing confidence, Matthew Sigel, VanEck’s Head of Digital Asset Research, stated, “I think there’s a very good chance that a Solana ETF will be trading by the end of next year.” Similarly, Geoffrey Kendrick, global head of digital assets research at Standard Chartered, believes that a Solana ETF approval is more probable under a Trump administration.
Solana’s Market Performance
Solana has recently reached a new all-time high, trading at $264.31 on Coinbase Inc. This marks an 18% increase over the past week, contributing to its impressive 160% rise since the start of the year. With a market capitalization of $123 billion, Solana now accounts for approximately 4% of the total cryptocurrency market.
Market analysts continue to be optimistic about Solana’s performance, setting a new price target of $400 following its surpassing of the previous all-time high of $260. This bullish sentiment reflects the increasing anticipation and confidence in Solana’s potential within the digital asset ecosystem.
