Cryptocurrency-based ETFs (Exchange Traded Funds) have taken the crypto community by storm in 2024. The year began with the SEC Approving 11 spot Bitcoin (BTC) ETFs. The launch triggered a market rally, and BTC hit a new all-time high in March. The BTC ETFs foreshadowed the launch of Ethereum (ETH) ETFs a few months later. The crypto community now braces itself for other altcoin-based ETFs, such as Solana (SOL).
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Solana ETF Around The Corner?
According to Matt Sigel, head of digital asset research at VanEck, Donald Trump’s pro-crypto stance could lead to increased altcoin ETF approvals. The financial institution filed for an SOL ETF in June. According to Sigel, the filing was a bet on a Trump victory in the US Presidential election. Sigel believes the Trump administration will be more lenient toward the cryptocurrency sector. He also thinks the SEC will approve more crypto products than they did in the last four years.
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According to the VanEck executive, we could witness a Solana (SOL) ETF before the end of 2025. Sigel stated, “I think the odds are overwhelmingly high that there will be a Solana ETF trading by the end of next year.“
Will An ETF Lead To The Asset Surging?
The spot Bitcoin ETFs from earlier this year led to BTC hitting a new peak in March. The Ethereum (ETH) ETFs did no such thing for the asset. Solana (SOL) is quickly catching up to ETH as an alternative. The SOL network is growing incredibly fast while offering cheaper gas fees.
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SOL has also displayed incredible robustness. The asset’s price fell to below $10 after the collapse of FTX in November 2022. Since its 2022 lows, the asset has made quite a comeback. SOL is currently down by only 6.4% from its all-time high of $259.96.
An SOL ETF could propel the asset’s price to a new peak. However, whether the SEC approves the filing is yet to be seen.
