Due to the ongoing evolution of the industry, the cryptocurrency market looks very interesting. Today, on December 4, 2024, major asset management company Grayscale Investments has formally applied for a Solana exchange-traded fund (ETF) with the New York Stock Exchange (NYSE).
Will Solana ETF be approved?
Under Gary Gensler's leadership, the U.S. Securities and Exchange Commission approved 11 Bitcoin ETFs in early 2024 and approved an Ethereum ETF in mid-2024. Now, with the approval of spot Bitcoin and Ethereum ETFs, the community is eagerly anticipating altcoin ETFs, with Solana appearing to be next.
Grayscale Spot Solana ETF
According to recently submitted documents by Grayscale, the company believes that transforming its existing Solana trust into a spot SOL exchange-traded product (ETP) similar to its Bitcoin trust would provide investors with a safer and more reliable way to invest in Solana (SOL). This move would allow trading to occur on regulated national securities exchanges, making access to cryptocurrencies easier and more reliable.
Grayscale Solana Trust is the largest trust of its kind and currently the largest investment fund for Solana (SOL) by assets under management. According to data, the company holds $134.2 million worth of SOL, accounting for nearly 0.1% of the total circulating supply of SOL.
However, as Gensler and his team are set to step down in January 2025, the crypto community is looking forward to quicker approvals. The potential approval of a SOL ETF would make it the next crypto product ETF in the U.S. after BTC and ETH.
Key resistance levels and price targets for Solana
Solana recently completed a correction with an ABC structure, where the price has dropped to the support area. This correction seems to be nearing its end, and Solana has the potential to reverse and start moving upward again. The current price structure suggests that the fifth wave of the correction may have been completed.
The next significant resistance level for Solana is around $246. If the price breaks through this level, the next major target will be $260. However, breaking through $260 could push Solana towards the next resistance level of $313.
The impact of Bitcoin and Ethereum on Solana's price movement
Solana's price movements tend to follow the market trends of Bitcoin and Ethereum. If Bitcoin and Ethereum experience significant price fluctuations, Solana is likely to reflect this trend. Therefore, monitoring the movements of these major cryptocurrencies is crucial for predicting Solana's next actions.
Conclusion
Solana has the potential to form a bull flag pattern and break out. If so, it may test higher levels, possibly around Christmas or the beginning of the New Year. With changes in cryptocurrency regulation on the horizon, Solana is likely to make significant moves, with some analysts predicting it could reach $300 or even $400.
