After spot Bitcoin Exchange Traded Funds (ETFs) approval and headway in Spot Ethereum ETFs, the crypto community hopes for Spot Solana ETFs. VanEck & 21Shares, two crypto giants filed for the Solana (SOL) ETFs recently which formed a silver lining for the Solana community.
It all began on June 27 when VanEck, an investment management company filed for Spot Solana ETFs. Following the application, 21Shares, the largest crypto exchange-traded products (ETP) issuer filed for the ETF on June 29. The giants' actions signal a growing institutional interest in SOL.
At press time, SOL was trading at $148.54, after an intraday drop of 0.30% with a market cap of $68,657,703,555 and $2,269,779,281 in 24-hour volume.
Source: CoinMarketCap
After the filing, SOL's price recorded a sudden surge of 8.72% in the past 7 days. The coin spiked from $138.85 on June 26 to $154.2 on July 3, before dropping to $148.54. The hike in price showcases positive development for SOL and the cryptocurrency industry.
As the Spot Ethereum ETFs are yet to be backed by the US Securities and Exchange Commission (SEC), the Solana Community may be required to wait for the SOL ETFs.
James Seyffart, a Bloomberg analyst forecasted that the SEC with the same admins may support the ETFs in 2025. However, the scenario would change if the white house and SEC have a new committee.
Source: X
According to Seyfart, filing the 19b-4 forms will also help in estimating the deadline timing for the approval. As of now, VanEck & 21Shares has opted for the S-1 forms to publicly offer new securities.
Approval of the ETFs would make SOL one of the biggest rivals for Spot Ethereum ETFs by enhancing its accessibility to investors. A sudden spike in price after the filing reflects the enhanced institutional interest in SOL.
Furthermore, GSR’s report shed light on the potential impact of a Solana ETF and predicted SOL’s value 9x higher if approved.
A significant development in the SOL ecosystem could be observed in the upcoming years which may bring the asset to a wider range of investors. Moreover, the SOL community may also witness further developments in the Solana-based memecoins.
Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT) have rallied significantly, showcasing surged demand for Solana-based products. At press time, WIF, BONK, and POPCAT traded at $2.04, $0.00002487, and $0.5573, respectively.
The journey towards Spot Solana ETFs is a testament to the growing maturity of the cryptocurrency market. As regulatory frameworks evolve and institutional interest peaks, assets like Solana are gaining prominence, promising a future where digital currencies are more accessible and integrated into mainstream investment portfolios. The road ahead is paved with opportunities and uncertainties, but one thing is clear: Solana's star is rising.
