Solana Soars 6%: Will Spot ETF Approval Light The Fuse For A Bullish Breakout?

Solana

Solana

Solana (SOL) surged over 6% today, fueled by news of Cboe Global Markets filing an application with the US Securities and Exchange Commission (SEC) to list spot Solana ETFs. This development marks a significant step towards easier access for investors to hold Solana without directly dealing with cryptocurrency exchanges.

The filing, submitted on behalf of asset managers 21Shares and VanEck, represents the first official proposals for Solana ETFs in the US market. Similar to the ongoing saga with spot Ethereum ETFs, these proposals require approval for both the 19b-4 form (filed by Cboe) and the S-1 form (filed directly by the issuers).

“We are addressing the increasing investor interest in Solana,” said Rob Marrocco, global head of ETP Listings at Cboe, highlighting Solana’s position as a major cryptocurrency alongside Bitcoin and Ethereum. The expectation is that spot Ethereum ETFs will be approved by the SEC within the next two weeks, paving the way for potential Solana ETF approvals sometime in mid-March 2025.

However, a cloud of uncertainty hangs over this timeline. Bloomberg analyst Eric Balchunas suggests that the outcome of the upcoming US elections in November 2024 could significantly impact the approval process. While a win for President Biden might stall Solana ETF’s progress, a potential win for his predecessor could open doors for their launch.

This potential delay comes amidst a period of technical optimism for Solana. The coin’s price has mirrored broader market volatility recently, but a swift bounce back to $140 suggests potential for further upside. Crypto analyst Ali Martinez draws parallels between Solana’s current price action and the RSI levels observed before its bullish breakout in 2021, hinting at a possible major price rally in the making.

While the prospect of a spot in the Solana ETF by mid-March 2025 is exciting for investors, the looming US elections add a layer of complexity. The coming months will be crucial in determining the regulatory landscape for cryptocurrency ETFs and Solana’s price trajectory.