The approval odds for a Solana ( $SOL ) exchange-traded fund (ETF) 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 Nov. 15, Sigel expressed optimism about regulatory changes following the U.S. presidential election on Nov. 5, which saw crypto-friendly Donald Trump emerge victorious.

Increased Regulatory Approvals Expected

Sigel anticipates the U.S. Securities and Exchange Commission (SEC) will adopt a more favorable approach toward cryptocurrency products under the new administration.

"We would expect the SEC to approve more crypto products than they have in the past four years," Sigel shared in an interview with the Financial Times.

He also predicted that a Solana ETF could start trading by the end of 2024, reflecting growing interest from asset managers, who have submitted a series of regulatory filings to list ETFs holding altcoins such as Solana (SOL), XRP, and Litecoin (LTC).

ETFs as “Call Options” on Trump’s Victory

Bloomberg Intelligence ETF analyst Eric Balchunas described the flurry of filings as “call options on a Trump victory.” During President Joe Biden’s tenure, the SEC adopted a stringent regulatory stance toward crypto, initiating over 100 enforcement actions against industry companies.

Balchunas noted that Trump is likely to appoint a more libertarian SEC chair, potentially easing the regulatory burden on the crypto sector. While no replacement for SEC Chair Gary Gensler has been announced, Trump is reportedly considering Summer Mersinger to lead the Commodity Futures Trading Commission (CFTC).

Shifting Regulatory Landscape

The CFTC, which plays a pivotal role in overseeing regulated cryptocurrency markets in the U.S., may adopt a more accommodating approach under Mersinger’s leadership. The SEC has also begun reviewing proposals for several crypto-related ETFs, including:

Grayscale’s application for the first ETF to hold a diversified basket of cryptocurrencies.

Requests for options tied to spot Ether (ETH) ETFs on NYSE American’s securities exchange.

A Turning Point for Crypto

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, described Trump’s election as a pivotal moment for the crypto industry.

"For the past four years, crypto has been operating with one arm, maybe two arms, tied behind its back," Hougan remarked. "It’s faced a hostile SEC, major regulatory uncertainty, and constrained access to basic banking services."

With the anticipated changes in leadership and regulatory stance, the environment for cryptocurrency innovation and adoption in the U.S. may undergo a significant transformation, potentially unlocking new opportunities for altcoins like Solana, XRP, and Litecoin.

Conclusion

As the SEC and CFTC reassess their approaches under a new administration, the likelihood of crypto ETFs, including one for Solana, receiving approval has increased significantly. These developments could mark a new chapter for the cryptocurrency industry, paving the way for broader institutional adoption and market growth.

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