The Filings from VanEck, 21shares, Bitwise, and Canary Capital for spot Solana (SOL) Exchange Traded Funds (ETFs) have been officially added to the Federal Register, giving the US Security and Exchange Commission 240 days to approve or deny the filings.
The Solana ETF filings entered the Federal Register on February 18, showcasing the evolution of crypto in the US amid the new administration.The Security and Exchange Commission now has 240 days to approve or reject the filings, if the overall US crypto inclination gets reflected in the SEC, we can expect new Solana spot ETFs by October.
In addition to VanEck, 21shares, Bitwise, and Canary Capital, the filings of Grayscale were also added to the Federal Register, which SEC acknowledged on February 12, the time period to get approved is until October 16.
Will The ETF Approvals Boost Solana?
Solana’s market value has glided significantly in the past months, mainly due to the spill of the Libra meme coin, and the buzz of ETF spots is a much-needed arena to elevate its position. Not only the collapse of Libra, but other factors like declined decentralized exchange (DEX) activity and lessened interest in meme coins also affected the network adversely, resulting in a drop of 42.6% from its all-time high of $294.3.
Many analysts including Bloomberg’s Eric Balchunas and James Seyffart anticipate that the Solana ETFs will be approved. They project a 70% chance of getting the filings approved, especially if the existing legal questions around Solana’s regulatory classification are resolved.
If the ETFs are approved, SOL could reach $500 or even higher, as per the forecast of VanEck, a digital asset manager. JP Morgan, an American financier, and investment banker, forecast that Solana spot ETF could bring around $3 billion to $6 billion in net assets within the first year, which will enhance the price and liquidity of Solana, making it gain its lost momentum.
Are Spot ETFs The New Trend?
With the changing regulatory landscape in the US, especially with the new administration under Donald Trump, a new wave of crypto is being expected. Gaining the advantage of the new government and changed SEC Chair many exchanges and asset managers have filed approval for ETFs, where investors gain exposure of crypto without directly holding or purchasing them.
The filings of Grayscale, VanEck, Bitwise, and Canary Capital for Solana spot exchange-traded funds show increased interest in ETFs. Analysts like Balchunas and Seyffart predicted at the end of 2024 that there will be a wave of crypto ETFs in the coming years and SOL, Hedera, Liteoin, and XRP ETFs would hit the market, which is coming to reality.
Canary Capital on February 19 announced Axelar (AXL) trust, which may add another asset to the approval linings. The firm announced that the Canary AXL trust will give institutional and retail investors secure exposure to Axelar Network’s native crypto, AXL. This trust is the first investment trust gaining exposure to a blockchain interoperability protocol, proving seamless cross-chain connectivity in the Web3 interface. Coinbase is selected as the custodian of the trust.
