Solana
Expect THIS from SOL price IF a Solana Spot ETF is approved!
- 21Shares edges out VanEck in search of Solana Spot ETF
- Increased inflows from Solana can be expected IF applications are accepted
Solana [SOL]The market’s performance in recent years has recently attracted the attention of many Wall Street institutions. It is therefore not surprising that some of them are now very interested in the idea of a Solana spot ETF.
21Shares moves in
In order to capitalize on the growing interest in SOL, Swiss asset management firm 21Shares has filed an application application to list a Solana ETF in the United States. This filing closely follows a similar application submitted by its competitor – VanEck.
21Shares’ application hinges on the altcoin’s legal classification. The filing assumes that Solana is not considered a security under U.S. law. This distinction is important because security ETFs face stricter regulations than standard ETFs.
If the SEC classifies it as a security, 21Shares could withdraw its application entirely. This potential withdrawal would stem from the additional registration requirements associated with security ETFs, which 21Shares may not be willing to comply with.
How will SOL be affected?
A potential Solana spot ETF is expected to boost the price of Solana (SOL), similar to how Bitcoin’s price surged after its spot ETF was approved.
In fact, a recent analysis by GSR Markets actually used Bitcoin’s 2.3x price rise as a starting point. It is worth pointing out, however, that they have acknowledged that the Solana ETFs are unlikely to attract the same level of investment. To account for this, GSR instead explored three scenarios based on potential investment flows, relative to Bitcoin ETFs.
In the bear case, they assumed a 2% increase in SOL inflows. This assumed a low level of interest in Solana ETFs, with only 2% of inflows compared to Bitcoin.
Next is the base case, which would see 5% of inflows versus Bitcoin. This would be a more moderate scenario based on actual investment activity in Solana products from 2021 to 2023, excluding 2024 to avoid the influence of Bitcoin ETFs.
In the most bullish and optimistic scenario, GSR factored in higher relative inflows of SOL in 2022 and 2023. It estimated that the altcoin could attract 14% of inflows, compared to Bitcoin on average.
Source: RSG
At press time, SOL was trading at $141.80, with its price down 2.53% over the past 24 hours. In fact, its trading volume during the aforementioned period also dropped by 33.23% on the charts.
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Source: Santiment