Solana, The Fifth-Largest Crypto By Market Cap, Could Be Next To Get Its Own Spot ETFs - The Average Joe


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    Solana, The Fifth-Largest Crypto By Market Cap, Could Be Next To Get Its Own Spot ETFs

    Rhea Lobo

    June 29, 2024

    Before Ethereum ETFs even hit the market, US ETF providers are already eyeing their next cash cows. Last week, asset managers VanEck and 21Shares submitted applications for the first-ever Solana-based exchange-traded funds (ETFs) — causing the token to jump as much as 8% while its value has soared nearly 800% over the past year. The current administration might not be keen on Solana ETFs, but a pro-crypto Trump administration could accelerate the launch of crypto ETFs beyond just Bitcoin and Ether.

    • Currently, only Bitcoin ETFs are approved in the US, with Ethereum-based ETFs still awaiting the SEC’s final approval. Analysts predict that Ether ETFs could see $5B in inflows within the first five months.
    • The approval of Ether ETFs may open the door for Solana ETFs by 2025 — and market-making firm GSR suggests that if Solana captures even 5% of Bitcoin’s historical inflows, its value could triple.

    Three’s a trend: If approved, these ETFs could pave the way for broader crypto acceptance through regulated investment options. According to Nate Geraci from ETF Store, getting a spot Solana ETF approved would require either a new regulatory framework or SEC recognition of Solana as a non-security commodity. Both scenarios are unlikely under the current administration, indicating that VanEck and 21Shares are banking on a more crypto-friendly government in the future.

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