The likelihood of a spot Solana exchange-traded fund being accepted by the US Securities and Exchange Commission is increasing. The probability of approving an SOL ETF has increased to 71%, according to Polymarket, from 58% last week to 50% last month.
Trump’s Crypto Council & Solana ETF
With Donald Trump taking office and Paul Atkins being nominated to lead the SEC, this probability has been growing. By appointing Bo Hines as executive director and David Sacks, a former PayPal executive, as “crypto czar,” Trump has also started to put together his crypto council.
Months after firms like VanEck, Canary Capital, and 21Shares had their petitions rejected by the SEC, a spot Solana (SOL) ETF clearance would be a welcome development. Solana was alleged to be an unregistered security by the agency, headed by Gary Gensler. As the Solana meme coin loses shares, Popcat price forms a risky pattern.
Solana ETF and VolatilityShares
Consequently, investors hope Atkins. It will be different from Jay Clayton and Gary Gensler since the chances of SOL ETF approval are rising. At the same time, VolatilityShares has applied for Solana ETFs based on futures. Which will offer investors 1x, 2x, and -1x the coin’s exposure. Since there are no Solana futures, such an application is completely illogical, says Eric Balchunas, a senior ETF analyst at Bloomberg.
Among the leveraged exchange-traded funds (ETFs) offered by VolatilityShares, the 2x Bitcoin ETF stands out with an asset value of more than $3.2 billion. More than $830 million worth of assets are being managed via its 2x Ethereum (ETH) ETF.
Solana’s Growth and ETF Outlook
A lot of people are really into the Solana blockchain and cryptocurrency. With a valuation of more than $90 billion, its token ranks as the sixth-largest cryptocurrency. When it comes to blockchain assets, Solana is now the number two chain, with about $8.25 billion. In terms of volume, its DEX protocols, such as Orca and Raydium, are at the top.
Together, they have processed nearly $636 billion, with $18.9 billion of it coming in just the past seven days. Since more investors have begun to embrace Solana ETF Approval, the likelihood that spot Solana ETFs will draw funds is increasing. According to SoSoValue’s data, Ether ETFs have received more than $2.68 billion.
Summary
The probability of a Solana ETF approval has risen to 71%, fueled by Donald Trump’s crypto council and Paul Atkins’ SEC leadership. Despite past rejections, Solana’s growing value and volume boost its ETF prospects. VolatilityShares’ future-based ETF application is seen as illogical, as no Solana futures exist. With Solana’s market presence and strong DEX protocols, it’s gaining investor interest similar to Ethereum ETFs.
FAQs
How has Donald Trump's crypto council influenced Solana ETF chances?
Trump's crypto council and Paul Atkins leading the SEC have increased the probability of Solana ETF approval.
What is VolatilityShares' role in the Solana ETF market?
VolatilityShares has applied for Solana ETFs based on futures, but experts say this is illogical due to the lack of Solana futures.
How does Solana's market growth affect its ETF prospects?
Solana’s $90 billion valuation and top-ranking DEX protocols are increasing its ETF appeal, similar to Ethereum.
What has been the investor response to Ethereum ETFs and how does it relate to Solana?
As Ethereum ETFs attract significant funds, similar interest is expected to drive the approval and success of Solana ETFs.
