Solana (SOL) has emerged as the early frontrunner in a bullish cryptocurrency market to kick off Q3 2024. Surpassing both Bitcoin (BTC) and Ethereum (ETH) in gains, SOL surged by an impressive 7.5% within the last 24 hours, adding to an 18% price increase over the past week. This positive momentum extends to the Solana memecoin market as well, with a collective market cap exceeding $7.73 billion – a 10.4% daily jump according to CoinGecko.
Market analysts are attributing this upswing to the recent filings for Solana-based Exchange Traded Funds (ETFs) by two major investment firms, VanEck and 21Shares. VanEck filed for a spot Solana ETF with the US Securities and Exchange Commission (SEC) on June 27th, followed by a similar filing from 21Shares the next day. These developments have fueled investor optimism surrounding the potential launch of a regulated Solana ETF in the near future.
The timing of these filings coincides with the upcoming US presidential election, where the candidates hold contrasting views on cryptocurrency. Former president Donald Trump’s pro-crypto stance stands in stark contrast to President Joe Biden’s more cautious approach. Van Buren Capital’s Scott Johnsson believes the news of a potential Solana ETF could pose a challenge for President Biden’s re-election campaign, particularly among undecided voters.
However, experts like James Seyffart, ETF analyst at Bloomberg Intelligence, offer a more nuanced perspective. Seyffart suggests VanEck’s filing might be a strategic move, anticipating a potential shift in regulatory stance under a new administration. He highlights the current SEC’s historical reluctance to approve cryptocurrency ETFs due to the lack of a federally regulated futures market. However, a change in leadership at the White House and the SEC could pave the way for a more crypto-friendly environment, potentially greenlighting a Solana ETF.
Despite these mixed opinions, the prospect of a Solana ETF has undeniably boosted SOL’s price. Technical indicators also paint a promising picture for SOL’s future. Bollinger Bands suggest reduced volatility and sustained bullish sentiment, while the Relative Strength Index (RSI) hovering above neutral territory further confirms this upward trend.
While the exact impact of the proposed ETFs remains to be seen, Solana’s strong start to Q3 suggests a period of continued growth for the altcoin. With investor sentiment buoyed by ETF prospects and positive technical indicators, SOL appears poised to maintain its momentum in the coming months.
