Earlier this month, European digital asset manager CoinShares filed for a Solana exchange-traded fund (ETF). This news follows recent Form D filing with the U.S. Securities and Exchange Commission (SEC) posted Friday. Notably, CoinShares is raising the stakes by applying for a Solana ETF. With this move, they join a growing cohort of asset managers looking to create altcoin-based investment products. The application itself comes in just under the wire. Seven issuers sent in revised applications for SOL ETFs, amending the language to permit them to stake their held SOL.
Solana's Appeal and Market Performance
Further, Solana is growing quickly and getting more attractive to developers. Its unmatched speed and efficiency is well-suited for constructing decentralized applications, including crypto exchanges and games. Ranked as the sixth-largest cryptocurrency by market capitalisation, SOL maintains significant investor interest. The current SOL price is $156.87, which is up almost 4% in the last 24 hours. It was trading recently at an all-time high of $293.31 in January, per CoinGecko. Now, the approval of a Solana ETF would likely supercharge its bullish performance.
Favorable Regulatory Environment
With new Solana ETFs attracting significant attention. This explosion has been possible in large part due to a much more welcoming regulatory climate fostered by U.S. regulators and legislators. In other words, this shift has created a healthier optimism for investors in the fast-growing digital assets industry. And bitcoin funds are killing it, overseeing more than $100 billion in assets. Underpinning this success is the continued warming of the waters for new cryptocurrency investment products. BlackRock’s iShares Bitcoin Trust (IBIT) reached $70 billion in assets under management (AUM) in just 341 days, outpacing all other funds in history.
Optimism for SOL ETF Approval
Bloomberg Senior ETF Analyst Balchunas gives a 70% likelihood that Solana ETFs will be approved this year. Even without Ethereum’s recent run-up, existing Ethereum-tracking funds have been on record-shattering roll. They have attracted $3.9 billion in net inflows, a U.K.-based asset manager Farside Investors found, sparking even more optimism. Technological might Solana’s technological advantages are arguably its biggest asset — supercharged by a friendly regulatory environment. Combined with the success of other cryptocurrency ETFs, this gives an incredibly favorable picture for the approval and subsequent adoption of Solana-based investment products.
