Is Solana Next in Line for a Spot ETF? Matrixport Executive Offers Insight
The possibility of a spot Ethereum ETF being approved by the US Securities and Exchange Commission (SEC) has created a buzz in the cryptocurrency market. Daniel Yan, co-founder of Matrixport, believes that Solana (SOL) could be the next cryptocurrency to gain approval for an ETF.
As the decision on a spot Ethereum ETF from the SEC is imminent, speculation is growing about which cryptocurrency could be next in line. Yan sees Solana as a strong contender, potentially benefiting from the success of Ethereum. He draws a parallel to the approval of the Bitcoin ETF, which boosted the value and market interest in Ethereum.
Indeed, the launch of the spot BTC ETF in the US led to a 12% increase in the ETH/BTC pair within a week. Yan suggests that Solana could experience a similar surge in momentum.
The crypto community is also actively speculating that the approval of a spot Ethereum ETF will prompt applications for ETFs on other altcoins. Cryptocurrency analyst Ted hinted at the possibility of future ETF filings, stating, “The market is certainly not priced for this… if it’s approved, get ready for all kinds of spot altcoin filings. cough, cough SOL.”
However, there are experts who believe that filing for a spot ETF for Solana might be challenging since there are no currently listed SOL futures ETFs. Unlike Bitcoin and Ethereum, which had actively traded futures ETFs when their spot ETFs were approved, Solana lacks this critical step, potentially hindering its immediate consideration for a spot ETF.
While no Solana ETFs are currently approved in the US, alternatives like the Grayscale Solana Trust (GSOL) and products such as VanEck’s Solana ETN and 21Shares’ Solana ETP offer exposure to SOL prices through derivatives. These products provide investors with indirect ways to trade SOL, reflecting its price movements.
Despite the challenges, the recent surge in SOL’s price by over 23% in the past week indicates growing interest and speculation. This rise reflects increased investor confidence and anticipation regarding Solana’s potential.
With the right regulatory environment, Solana could soon achieve ETF approval, joining Bitcoin and Ethereum as a major milestone in its development. While obstacles exist, the optimism expressed by industry leaders like Daniel Yan suggests that ambitious predictions can become reality.