Several applications for Solana [SOL] exchange-traded funds (ETFs) are currently being reviewed by the U.S. Securities and Exchange Commission (SEC).
Noteworthy contenders such as Canary Capital, VanEck, 21Shares, and Bitwise have joined the competition, sparking interest in introducing SOL to the Wall Street scene.
Against the backdrop of this increasing excitement, observers are eagerly awaiting to see if Solana will mirror the success of Bitcoin [BTC] and Ethereum [ETH] ETFs.
Grayscale’s Recognition of Solana ETF
The race to debut a Solana ETF kicked off when Grayscale’s Solana ETF application received acknowledgment from the SEC last week.
This acknowledgment positioned Grayscale as a potential frontrunner among a slew of SOL-centric proposals.
The regulatory body has initiated a 21-day public comment period on NYSE Arca’s proposal to list and trade the Grayscale Solana Trust, marking a pivotal step in the approval journey.
Meanwhile, Franklin Templeton’s registration of the “Franklin Solana Trust” in Delaware on February 10 indicates the asset manager’s readiness to venture into the SOL ETF market.
Polymarket Insights and Price Trends
The developments have fueled positive market sentiment regarding a possible SOL ETF approval in 2025. Data from Polymarket shows an 83% probability of approval.
This growing optimism coincides with recent price fluctuations, with SOL priced at $195.73 at the time of writing.
Within the past 24 hours, the coin experienced a 4.47% drop as per CoinMarketCap’s data.
Despite short-term market volatility, the increasing likelihood of regulatory approval signals a potential acceleration in institutional demand for Solana-related investment products, potentially influencing SOL’s long-term market trajectory.
Commenting on the buzz surrounding the SOL ETF, James Seyffart remarked,
“Update: As expected. SEC is acknowledging more Solana filings. The important ones will be if they acknowledge XRP & Doge filings.”
Upcoming Altcoin ETFs
While Bloomberg analysts have suggested that Litecoin [LTC] and Dogecoin [DOGE] ETFs have a higher likelihood of SEC approval compared to SOL and Ripple [XRP], recent developments indicate a shift in regulatory focus.
As regulatory momentum gains traction, the approval timeline for crypto ETFs remains uncertain.
Nonetheless, the increasing attention on Solana hints at its potential significant role in shaping the institutional adoption phase of cryptocurrencies.
Reflecting on this, Eric Balchunas aptly stated,
“Our official altcoin ETF approval odds are out. Litecoin leads with a 90% chance, then Doge, followed by Solana and XRP. We are only doing 33 Act $IBIT-esque filings. But it is possible to see futures or Cayman-subsidiary type 40 Act stuff get through as well,”