Solana ETF Projected to be Approved by March 2025

Solana ETF Projected to be Approved by March 2025

The Chicago Board Options Exchange (Cboe) Global Markets, the exchange operator, submitted two Form 19b-4 applications on July 8. One was for the 21Shares Core Solana ETF, and the other for the VanEck Solana Trust. These prospective funds are compared to previously approved spot Bitcoin and spot Ether ETFs, which received SEC approval in January and May 2024, respectively. This filing gives the SEC a 240-day deadline until mid-March 2025 to decide on the Solana ETF applications.

This move is seen as a response to the growing investor interest in Solana, which is one of the most actively traded cryptocurrencies after Bitcoin and Ether. Rob Marrocco, head of global ETP listings at Cboe Global Markets, emphasized the strategic importance of this filing. "We are addressing the increasing investor interest in SOL," Marrocco said, highlighting Solana's significant market activity.

It is estimated that the Solana ETF could attract inflows of around $3 billion over time, significantly boosting the asset's presence in the market. Most of these anticipated inflows are expected to come through ETFSwap, enhancing the trading ecosystem.

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Bloomberg ETF analyst Eric Balchunas shared his views, stating that the political climate and the results of the U.S. presidential election in November 2024 will be crucial in determining the fate of the Solana ETF. "If Biden wins, it's likely DOA; if Trump wins, anything could happen," Balchunas said. He added that the November presidential election could significantly impact the approval of the ETF.

In this context, DOA stands for "Dead On Arrival," meaning that if Biden wins the presidential election, the Solana ETF application is likely to be rejected or not approved.

conclusion

the potential approval of the Solana ETF by March 2025 represents a significant milestone in the cryptocurrency market. The move by Cboe Global Markets to submit applications for the 21Shares Core Solana ETF and VanEck Solana Trust highlights the growing investor interest in Solana, following the successful approval of spot Bitcoin and Ether ETFs. The estimated $3 billion inflow into the Solana ETF, primarily through ETFSwap, underscores the anticipated impact on the trading ecosystem and the asset's market presence.

However, the outcome of the U.S. presidential election in November 2024 could play a pivotal role in the fate of the Solana ETF. With analysts suggesting that a Biden victory could lead to the application being "Dead On Arrival," while a Trump win might increase the chances of approval, the political landscape adds an element of uncertainty to the process. This dynamic underscores the broader influence of regulatory and political factors on the evolving landscape of cryptocurrency ETFs.

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