The United States’ crypto-friendly policies and the success of Bitcoin and Ethereum-based exchange-traded funds (ETFs) suggest that spot Solana ETFs may emerge within the next year, according to The Block CEO of Two Prime Digital Assets, Alexander Blum.
“[Major issuers] wouldn’t spend time and money if they weren’t confident of success. […] Access for institutions and retail investors to cryptocurrency through ETFs via regulated financial channels in banks and exchanges opens up pools of capital that didn’t exist before,” Blum emphasized.
On November 21, the Chicago Board Options Exchange submitted applications to the SEC for the launch of SOL ETFs from VanEck, 21Shares, Canary Funds, and Bitwise Asset Management. According to the expert, the regulator is already reviewing their S-1 forms, setting a decision deadline for early August 2025.
Bloomberg exchange analyst James Seyffart also believes a Solana ETF could launch by the end of 2025.
Optimism around ETFs has been bolstered by personnel changes in the U.S. government and the impending departure of Gary Gensler as SEC chairman.
Matthew Sigel, head of digital asset research at VanEck, believes that under new leadership, the Commission will approve more crypto products than in the past four years.
Austin Reid, head of revenue at crypto brokerage FalconX, called the launch of a Solana ETF a significant milestone for the ecosystem and a signal of major changes in the entire crypto industry.
The launch of Solana ETFs will be a massive milestone for the SOL ecosystem + also signals a major shift for the entire crypto industry.
Beyond new single-asset funds, regulatory clarity will pave the way for actively managed products + new basket ETFs — both of which will… https://t.co/vIEaaEb3iw
— Austin Reid (@austinreid21) November 22, 2024
“Beyond new single-asset funds, regulatory clarity will pave the way for actively managed products and new ‘basket ETFs’ — both of which will open new channels of institutional liquidity,” he added.
Following the news of the applications, the price of SOL surged significantly, surpassing its historical high of $264. At the time of writing, the coin is trading around $254.
On November 18, the daily transaction fees on the Solana blockchain reached a record $9.3 million.