The chances of a Solana ($SOL) exchange-traded fund (ETF) being approved in the United States by the end of 2025 are "overwhelmingly high," according to Matthew Sigel, VanEck’s head of digital asset research. Speaking on November 15, Sigel expressed optimism about regulatory shifts following the recent U.S. presidential election, which saw crypto-friendly Donald Trump secure victory.

A More Favorable Regulatory Climate

Sigel anticipates a significant shift in the U.S. Securities and Exchange Commission’s (SEC) stance on cryptocurrency products under the new administration:

Increased Approvals: Sigel expects the SEC to adopt a more lenient approach, approving more crypto products than during the previous four years.

Solana ETF Launch: He predicted a Solana ETF could begin trading as early as the end of 2024, reflecting heightened interest from asset managers submitting filings for ETFs involving altcoins such as Solana, XRP, and Litecoin.

ETFs as Strategic Moves Tied to Trump’s Victory

Bloomberg Intelligence ETF analyst Eric Balchunas described the surge in crypto ETF filings as “call options on a Trump victory.” During the Biden administration, the SEC maintained a stringent regulatory stance, initiating over 100 enforcement actions against crypto companies.

Balchunas suggested that Trump’s presidency might lead to the appointment of a more libertarian SEC chair, potentially easing the regulatory burden on the crypto industry. Reports indicate that Summer Mersinger is being considered to lead the Commodity Futures Trading Commission (CFTC), signaling a potential shift in regulatory priorities.

Shifting Regulatory Landscape

Changes in key regulatory bodies, including the SEC and CFTC, could reshape the crypto market:

SEC Approvals Under Review: Applications include Grayscale’s diversified crypto ETF and spot Ether ($ETH) ETFs on NYSE American.

CFTC’s Role: Under potential new leadership, the CFTC may adopt a more accommodative approach, providing a more supportive environment for regulated cryptocurrency markets.

A Pivotal Moment for Cryptocurrency

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, described Trump’s election as a turning point for the crypto industry:

Challenges Under Biden: The crypto sector faced a hostile SEC, regulatory uncertainty, and limited banking access.

Future Opportunities: Changes in leadership and policy could foster innovation, adoption, and institutional interest in cryptocurrencies like Solana, XRP, and Litecoin.

Conclusion

As the SEC and CFTC reassess their regulatory approaches under the new administration, the likelihood of crypto ETFs, including one for Solana, gaining approval has increased substantially. These developments could open the door for broader institutional adoption and mark a transformative era for the cryptocurrency industry.

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