The Chicago Board Options Exchange’s BZX Exchange recently applied for four Solana ETFs. The cryptocurrency ETF regulatory environment is expected to change significantly, which could create new possibilities for Solana ETF approval. Analysts believe the Securities and Exchange Commission (SEC) will move from an “enforcement-based” to a “disclosure-based” regulatory approach.
If approved, a Solana ETF could ignite significant demand in the cryptocurrency ETF market. Despite Solana being the fourth-largest cryptocurrency by market capitalization, it lacks a mature futures market and faces potential security classification hurdles. Four institutions are racing to apply for a Solana ETF, making it seem less “impossible” than before.
The SEC’s shift in regulatory approach is expected after the U.S. election, with the incoming President Trump and the most crypto-friendly Congress in history. SEC Chairman Gary Gensler, who has been criticized for the crypto industry, will step down in January 2025, bringing more optimism to crypto supporters.
A Solana ETF is very likely to be approved by the end of next year, according to ETF Store President Nate Geraci. However, Solana faces potential approval challenges, such as the existence of futures trading and the deviation between the price of futures ETFs and spot prices. Additionally, Solana was listed among 19 unregistered securities when the SEC filed lawsuits against Binance and Coinbase Global Inc.
in 2023. If approved, the demand for a spot Solana ETF is estimated to reach around $3 billion eventually.
Source
<p>The post Solana ETF Approval Prospects: From ‘Almost Impossible’ to ‘Feasible by End of 2025’ first appeared on CoinBuzzFeed.</p>
