Eleanor Terrett, a journalist and producer linked with FOX Business, has disclosed that Solana ETF applications from multiple organizations, including Grayscale, Vaneck, Canary Capital, Bitwise, and 21Shares, have been formally submitted to the Federal Register.
As indicated in Terrett’s update on X, these applications were filed on 18th February, beginning a 240-day review phase for the Securities and Exchange Commission (SEC), which is required to make a ruling by 16th October.
The SEC’s recent endorsements of Bitcoin (BTC) and Ethereum (ETH) ETFs in 2024 have opened the door for further crypto-related ETFs in the United States, fueling speculation that an SOL ETF might be approved this year. Bloomberg ETF analysts Eric Balchunas and James Seyffart predict a 70% chance of the SEC permitting the Solana ETF, highlighting that the financial authority has recognized the 19b-4 submission for the asset. Nonetheless, the SEC currently does not categorize SOL as a commodity, a position that could complicate the ETF approval journey.
If the SEC greenlights a Solana ETF, analysts are eager to determine the potential market reaction. If SOL experiences a price surge akin to Bitcoin’s following its ETF approval—where BTC soared from $46,105 on 10th January 2024 to $92,376 one year later, marking nearly a 100% increase—SOL could also witness notable uptrends. A comparable 100% rise would boost SOL’s price to $343.46, establishing a new record high for the asset.
Conversely, there is also the chance that SOL may not follow in Bitcoin’s footsteps following the ETF approval. Ethereum’s price did not reach a new all-time peak after its ETF launch in 2024, indicating that Solana could face a similar path. As the situation unfolds, market analysts remain attentive to the SEC’s upcoming deliberation.