A recent study has shed light on the possibility of the approval of Solana exchange-traded funds (ETFs) in cash. GSR’s forecast emphasizes that Cardano (ADA) and Ripple’s XRP are unlikely to secure approval for their respective ETFs in the near future. However, Solana (SOL) is seen as having significant potential.
Two key factors set Solana apart as a frontrunner in the approval process: its decentralization and the market demand for SOL. The recent launch of VanEck’s Solana spot ETF on June 27 underlines the increasing institutional interest in the cryptocurrency.
Being positioned as one of the prominent players in the crypto world, Solana is likely to follow suit with others already having or on the cusp of securing a spot ETF. The impact on SOL could be substantial, as mentioned in the report.
The GSR report points out that Solana’s strong points lie in its decentralization and market demand, giving it an edge over its competitors. The data indicates that it is highly probable that Solana will be the next in line for ETF approval.
Combining the scores for decentralization and demand, a final ETF possibility score is derived. The report emphasizes that decentralization is given a weight of 33% and demand 67%, with the belief that decentralization may play a more crucial role while issuer preference will lean towards potential demand. The overall results strongly indicate that Solana is poised to be the next approved spot digital asset ETF in the US.
At the time of writing, the price of Solana stands at US$145.17, showing a 4.4% increase in the last 24 hours.
VanEck Unveils Proposal for Solana ETF
In a significant move for the cryptocurrency industry, investment firm VanEck disclosed a proposal on June 27 to launch a Solana (SOL)-backed exchange-traded fund (ETF) in cash. The filing of the S-1 document for a Solana ETF has been submitted to the Securities and Exchange Commission (SEC) in the US.
This development follows the approval of Bitcoin ETFs by the SEC in January and the recent authorization of Ethereum ETFs at the end of May, marking a surprising development in the industry.
The VanEck Solana Trust is set to provide direct exposure to the Solana cryptocurrency. According to the information provided by the asset manager, the shares will be valued daily based on prices obtained from selected trading platforms by MarketVector.
Disclaimer: The opinions expressed by the author and individuals mentioned in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading in cryptocurrencies carries a risk of financial loss.
Editor’s Pick: Analyst suggests volatility ahead for Solana; SOL price could see significant changes. VanEck unveils Solana ETF proposal; SOL price experiences a surge.