The wait for the first Ethereum ETF continues, but crypto enthusiasts might have more to celebrate soon. Senior ETF analyst Eric Balchunas predicts a domino effect triggered by Ethereum’s approval, with Solana potentially becoming the next cryptocurrency to enjoy the ETF spotlight.
Delayed Decision Fuels Speculation
The US Securities and Exchange Commission (SEC) recently extended its decision on the Ethereum ETF, pushing the date from July 18th to July 23rd, 2024. This delay has ignited discussions within the crypto community, with many speculating on the potential implications for the broader market.
Solana ETF: A Logical Next Step?
Balchunas, a prominent figure in the ETF space, sees the Ethereum ETF approval as a potential turning point. He suggests that other cryptocurrencies, particularly Solana (SOL), could be well-positioned to follow suit. Solana, known for its high-speed transactions and scalability, shares some similarities with both Bitcoin and Ethereum, making it a strong candidate for an ETF offering.
“After the launch of Ether ETFs, there will be additional flows and more Ethereum products, then Solana, and it’s probably never going to end. The dam has broken,” Balchunas stated, hinting at a potential surge in popularity for crypto ETFs.
VanEck Takes the Lead in Solana ETF
The possibility of a Solana ETF isn’t just speculation. Investment management giant VanEck became the first firm to file an S-1 registration statement for a Solana ETF back in June 2024. This move underscores VanEck’s confidence in Solana’s potential, further fueling the anticipation for a potential ETF launch.
Solana’s Decentralization: A Key Selling Point
Matthew Sigel, Head of Digital Assets Research at VanEck, compared Solana to Ethereum in a recent interview. He highlighted Solana’s decentralized nature and its open-source app store as key factors that position it favorably for a Solana ETF offering.
“We concluded that Ethereum and Solana, at this point, are fundamentally the same,” Sigel said. “No single entity controls more than 20% of Solana, nor can they halt the chain unilaterally. Solana is a utility commodity that gives access to the second largest open-source App Store.”
Bullish Momentum for Solana
Market data appears to reflect the growing interest in Solana. According to CoinGecko, Solana is currently experiencing a bullish trend, trading at $161 with a 10.94% increase since the beginning of the week. With the potential for an ETF on the horizon, this momentum could gain further traction in the coming weeks.
The Road Ahead
While the SEC’s final decision on the Ethereum ETF remains to the be seen, Balchunas’ prediction and VanEck’s proactive approach suggest that a Solana ETF could be on the cards. With its growing adoption and unique characteristics, Solana appears to be a strong contender to join the ranks of tradable crypto assets through ETFs. The coming weeks could see significant developments in the crypto ETF landscape, potentially paving the way for a new wave of investment opportunities.