According to the latest news, BlackRock did start the application process for SOLETF in July. This news has far-reaching significance for the altcoin market, especially for SOL-related projects. If BayRock's application is approved, the launch of SOLETF can boost the price of altcoins in SOL and its ecosystem significantly.

Understanding SOLETF and its significance

Before we start applying for SOLETF, we first need to clarify the definition and meaning of SOLETF.

SOLETF, the tokenized ETF on the Solana chain, is a financial product based on the Solana public chain that is automatically managed and traded through smart contracts. SOLETF allows investors to obtain a diversified cryptocurrency portfolio at a lower cost and higher efficiency, thereby reducing the risk of a single asset.

What is the biggest problem with SOL right now?

2023/6/5, SEC classifies SOL as a security in Binance case

2023/6/6, SEC classifies SOL as a security in Coinbase case

Why is it difficult for an ETF to be approved if it is judged as a security? What is the relationship between the two?

In the United States, securities are regulated by the SEC and need to comply with a series of regulations, including meeting the SEC's registration and disclosure requirements, and there may be trading restrictions, etc. The whole process is quite strict.

For example: SEC = supermarket, cryptocurrency = fruit, ETF = fruit basket

Being considered a non-security is like labeling a fruit as “ordinary fruit”, which makes it easy to put it in the fruit basket.

Being considered a security is like labeling a fruit as a "special fruit". Then it needs to meet more rules and requirements of the supermarket, so it is difficult to put it in the fruit basket.

A year ago, the SEC classified SOL as a security. It is impossible for them to immediately turn around and say that SOL is not a security (they also want to save face), so a SOL ETF is not possible in the short term.

In addition, in the above two lawsuits, 18 tokens were judged to be securities, including BNB, BUSD, ADA, MATIC, ATOM, FLOW, ICP, etc. Similarly, it is impossible for these tokens to pass ETF in a short time.

If approved, SOL price prediction

As for the native token SOL, GSR pointed out that Bitcoin has risen 2.3 times from $27,000 in October last year (when "market participants began to believe that there was a high probability that a U.S. spot ETF would be approved") to the current price of about $63,000.

GSR predicts:

“Solana could grow 1.4x in a bear liquidity scenario, 3.4x in a sideways scenario, and 8.9x in a bull scenario. Furthermore, there is reason to believe the impact could be higher than these estimates because, unlike BTC, SOL is actively used for staking and in decentralized applications, and the relationship between relative liquidity and relative scale may not be linear.”

Impact on the altcoin market

The launch of the SOLETF application process may attract more investors to the SOL ecosystem, thereby driving the growth of related altcoins. This is because ETFs, as an investment tool, can provide investors with a relatively convenient and low-cost way to invest in specific assets, such as SOL. If the SOLETF acquisition is approved, it may become an important channel for investors to enter the cryptocurrency market.

Currently, BlackRock has started the application process for the SOL ETF. This step is an important step towards the possibility of obtaining it. If the SOL ETF is finally obtained, it may have a positive impact on SOL and its altcoins, pushing up the prices of these assets.

In the vast ocean of digital currencies, SOL, as the native token of the Solana public chain, has attracted the attention of many investors and developers with its high efficiency, security and scalability. However, for many people who are new to SOL, how to apply for SOLETF (tokenized ETF on the Solana chain) may be a challenging and confusing process.

Once $SOL reaches $500, the Solana ecosystem will grow exponentially.

➜ If approved, $SOL will become even more popular and will bring crazy liquidity inflows in the medium term.

Therefore, this may be an opportunity you cannot miss to get 10x or more returns with the right tokens.

Which tokens are worth paying attention to?

SOL is the leader with the ETF narrative, and this bull market belongs to Bitcoin and MEME, so just choose MEME from the SOL ecosystem and that’s it.

$SOL $WIF is the first choice for big funds. WIF is the first MEME coin of SOL that is sought after by the world. It is backed by Musk and Wall Street, so it is very popular. It is considered to be the representative of the hat dog.

$Bome $BONK is the first choice for Chinese funds, with full market value circulation. BOME was successfully listed on Binance Exchange in just three days. It is similar to the past Shiba project, and its potential should not be underestimated. Each rebound of bonk is still quite fierce, but the wash is quite severe.

$NOS is a GPU project on SOL and an AI project. We have previously analyzed that the current rebound of the AI ​​sector is quite strong.

This year, it has performed very well, with a 700-fold increase in one year, from 0.01 to a peak of 7.3 in March, making it a new 100-fold coin project born in a standard bear market. The current price has fallen back to around $3.09, with a current market value of $160 million and a total FDV of around $300 million. Compared with RNDR's $3 billion, there is still a lot of room for growth.