TL;DR
- The crypto market is eagerly awaiting the potential approval of an Ethereum ETF, with attention now turning to Solana.
- Approval of an Ethereum ETF could benefit Solana, as both share similarities in their ecosystem and technology.
- Currently, alternatives like the Grayscale Solana Trust (GSOL) and derivative products exist. However, filing for a spot ETF could be challenging due to the lack of SOL futures listings.
The crypto world is on edge over the possibility of the U.S. Securities and Exchange Commission (SEC) approving an Ethereum ETF. However, attention is now shifting to other cryptocurrencies, and Solana (SOL) could be next in line. Daniel Yan, co-founder of Matrixport, believes SOL could be next in line for an ETF approval.
Yan compares the situation to the approval of the Bitcoin ETF, which boosted Ethereum’s value. Similarly, approval of an Ethereum ETF could benefit SOL, given their ecosystem and technology similarities.
What's the trade, if ETH ETF really get approved in two days?
The popular trade would be "BUY ETH". Can't really argue with that but do note that ETH is almost +20% over the past 24 hours. In addition, Bitcoin had a -15% drawdown in the couple of weeks after the approval on… pic.twitter.com/xtDGHqbq81
— Daniel Yan (@_D_Y_A_N) May 21, 2024
The crypto community speculates that approval of an Ethereum ETF could come soon and trigger ETF requests for other altcoins. Solana emerges as a promising candidate.
While speculative for now, there are alternatives like the Grayscale Solana Trust (GSOL) and products like VanEck’s Solana ETN and 21Shares’ Solana ETP. These offer exposure to SOL prices through derivatives.
Potential Challenges for Solana
However, it’s not all smooth sailing. Some experts note that filing for a spot ETF could be challenging. Unlike Bitcoin and Ethereum, which had actively traded ETF futures at the time of their approvals, SOL has yet to reach this critical stage. The lack of listed futures could hinder its immediate consideration for an ETF.
Despite the challenges, industry figures’ confidence like Daniel Yan suggests that bold predictions can come true. If SOL overcomes hurdles and the right regulatory environment is established, it could soon join Bitcoin and Ethereum in the North American ETF market. This would represent a significant step in its development and solidify it as an attractive option for investors and users seeking scalable and secure alternatives.
Solana has potential and never goes unnoticed. The crypto market remains attentive to developments, and the community eagerly awaits proposals surrounding SOL.
