[NEWS] SEC Begins Review of Solana Spot ETF Applications

On the 12th, the U.S. Securities and Exchange Commission (SEC) announced that it had officially begun reviewing the applications for Solana (SOL) spot ETFs submitted by multiple asset management firms.

Currently, four companies—21Shares, Bitwise, Canary Capital, and VanEck—have submitted applications.

The SEC has historically taken a cautious stance toward Solana ETF applications. However, with recent shifts in market conditions and the new SEC leadership under the Trump administration, the likelihood of ETF approvals for altcoins has increased.

The SEC has now opened a public comment period for these applications, allowing market participants and investors to submit their opinions. According to market analysts, if final approval is granted, up to $6 billion could flow into the Solana network, potentially accelerating its growth.

If the Solana spot ETF is approved, several significant market changes are expected. One of the most notable impacts would be a potential surge in SOL’s price due to increased capital inflows.

Once the ETF is officially approved, regulatory barriers will be lifted, encouraging institutional investors to enter the Solana market. According to JPMorgan's forecast, the Solana spot ETF alone could attract over $2.7 billion, while other altcoin ETFs, including Ripple (XRP), could bring in an additional $4.3 billion, thereby improving overall market liquidity.

Additionally, historical trends suggest that the approval of Bitcoin and Ethereum ETFs has led to price increases, and Solana may experience a similar effect.

On May 23, 2024, the U.S. Securities and Exchange Commission (SEC) officially approved the Ethereum (ETH) spot ETF. The timeline leading up to this decision shows that in January 2024, the Bitcoin ETF was approved, which accelerated the review process for Ethereum ETFs. Several Ethereum spot ETF applications, originally submitted in September 2023, were approved collectively on May 23, 2024.

Given the relatively short timeframe between the approval of the Bitcoin spot ETF and the Ethereum ETF, it is possible that the Solana ETF could follow a similar trajectory. The SEC's evolving regulatory stance on cryptocurrency ETFs may also serve as a key factor supporting the approval of the Solana ETF.

However, depending on regulatory developments and the SEC’s final decision, there is a risk of increased volatility in related assets and the broader cryptocurrency market. Therefore, a cautious approach is necessary. Moving forward, close attention should be paid to the SEC’s review process and its impact on market dynamics.

Reference: SEC
Image: Quote from the announcement

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