The prospects for a summer surge in Solana’s market are on the rise, as 21Shares steps in as the second issuer seeking to establish a Solana Exchange-Traded Fund (ETF).
Traditionally, it has been VanEck and 21Shares leading the charge in applying for cryptocurrency ETFs, a trend observed previously with Ethereum. The lingering question now is whether BlackRock and Fidelity will also enter the competition.
Recent development:
@21Shares has submitted an S-1 filing for a @solana ETF.
pic.twitter.com/drVT6kvtzr
— Cointelegraph (@Cointelegraph)
June 28, 2024
Regardless, Solana seems ready to continue its upward trajectory, particularly if there are substantial changes at the Securities and Exchange Commission (SEC) following the US presidential elections in November. Investors are keeping an eye out for the potential impact of Solana meme coins following the news about the ETF.
Will the SEC Grant Approval for Solana ETFs?
According to Bloomberg analyst James Seyffart, 21Shares’ move to apply for a spot Solana ETF is strategic, especially in light of the recent US presidential debate.
Appearing more astute after last night’s Biden debate performance
https://t.co/3UxcSVwWHD
— James Seyffart (@JSeyff)
June 28, 2024
Observers labeled President Biden’s performance as a “disaster,” significantly boosting the chances of a Trump presidency. In such a scenario, there could be changes in the leadership of the SEC after the elections.
Approval of the Solana ETFs by the current SEC Chair Gary Gensler seems highly improbable. The applications by VanEck and 21Shares treat Solana as a commodity, contradicting the Commission’s classification of it as a security in various legal battles.
Additionally, the current regulations demand a regulated futures market for crypto assets before spot ETF approval. While Bitcoin and Ethereum fulfill this requirement, Solana does not.
Nevertheless, with a potential new SEC leadership, possibly under the pro-crypto Commissioner Hester Peirce, the chances of Solana ETF approval could improve.
Peirce has critiqued the SEC’s use of Section 6(b) of the Securities Act in denying crypto ETFs in her dissents. She has also voiced concerns about the prerequisite surveillance-sharing agreements and Futures market for spot ETFs.
Thus, there could be a significant possibility of approval for Solana ETFs, especially if Trump wins in November.
SOL, Solana Meme Coins Poised for a Surge After ETF Approval
Renowned crypto firm GSR anticipates a notably positive impact on Solana’s market in the event of spot ETF approval, projecting a potential surge of up to nine times in Solana’s price post-approval.
Market experts are also focusing on Solana meme coins, which often serve as indicators of SOL’s performance. Notably, Dogwifhat has shown a strong correlation with Solana, frequently delivering gains in tandem with SOL’s movement.
Should Solana’s price experience a significant uptick post-ETF approval, it’s speculated that WIF could yield substantial returns, potentially reaching $10.
Investors are also showing optimism towards new meme coins like Base Dawgz, with some suggesting the possibility of up to 100x returns.
Base Dawgz operates on the Base chain and is expected to gain prominence as a major player in the meme coin market, following the footsteps of Brett. As a multi-chain meme coin, DAWGZ stands to benefit from the positive performance of various cryptocurrencies, including Solana.
Its innovative features such as share-to-earn and staking rewards have captured the interest of the investment community.
Another exciting meme coin to keep an eye on is Sealana, a seal-themed token scheduled for launch on July 2nd. SEAL has already raised over $6 million in its presale and is experiencing significant demand ahead of its Initial Exchange Offering (IEO).
Similar to Base Dawgz, experts believe that Sealana could become the next 100x meme coin.
21Shares like VanEck files for Solana ETF and speculates on BlackRocks potential involvement
