Via an X post, Bloomberg analyst Eric Balchunas recently noted that the crypto market mood is shifting towards an “altcoin exchange-traded fund (ETF) summer,” with a focus on Solana. He expressed increased confidence, raising the odds of a SOL ETF approval to 90% from 70%, citing positive momentum.
Notably, altcoin ETFs experienced a surge in optimism in June, with Solana and Litecoin leading the way with a 90% chance of spot ETF approval. XRP follows closely at 85%, while Dogecoin stands at 80%. Cardano, Polkadot, HBAR, and Avalanche have a 75% likelihood of gaining approval from the U.S. financial agency.
Solana ETF Awaits Approval
Market optimism surrounding the Altcoins ETF, including Solana, is poised for significant institutional breakthroughs. The United States Securities and Exchange Commission (SEC) has requested Solana ETF issuers to submit updated S-1 forms and other documents within the next week, marking a key step in the ETF approval process for these companies. Hypothetically, the dismissal of former anti-crypto SEC Chairman Gary Gensler has boosted the confidence of many asset managers in the potential approval of various ETFs.
The agency will review Solana ETF filings and provide feedback within 30 days, marking a crucial period for ETF hopefuls. The regulator seeks clarification on investor redemption processes and potential staking plans, including reward structures. This feedback loop will be pivotal in shaping the ETF’s operational framework and influencing investor returns, which in turn will impact approval prospects.
According to insiders, SOL ETFs could receive approval in as little as three to five weeks, with a target of July 2025, pending a smooth process. Such a development would be a major win for the Solana ecosystem and a significant boost to the crypto market.
Another Bloomberg ETF analyst, James Seyffart, expects the SEC to prioritize 19b-4 filings for Solana and staking ETFs, potentially leading to approvals as early as July, ahead of the official October deadlines. He backs Balchunas, predicting a wave of crypto ETF approvals this year, citing existing futures-based ETFs for Solana as a positive indicator. The presence of futures ETFs often simplifies the SEC’s approval process for spot ETFs.
A Surge in SOL ETF Filings
Competition is heating up in the Solana ETF space. Top firms including Fidelity, Franklin Templeton, VanEck, Bitwise, Canary Capital, 21Shares, and Grayscale are vying to launch a SOL ETF. Despite the companies’ silence, the industry excitement is palpable, with speculation running high on potential SEC approvals and market impact.
Grayscale seeks to convert its Solana Trust into an ETF, following its successful track record with other crypto trusts. However, the SEC recently delayed a decision on its application, stating it hadn’t “reached any conclusions” on the 19b-4 filing to list the proposed spot ETF.
The development sparked a 4.16% rally in SOL, pushing its price above $164, according to data from CoinMarketCap.
