Solana
Solana ETF Hype Sends SOL Price Up 18% – What’s Next?
- Solana has outpaced Bitcoin and Ethereum in gains, marking a strong start to the third quarter.
- VanEck and 21Shares filed for Solana ETF, influencing market sentiment.
The cryptocurrency market started the first day of the third quarter on a positive note, with Bitcoin [BTC] and various altcoins on a bullish trajectory.
Solana in the spotlight
Solana [SOL]in particular, stole the show with a remarkable 7.50% surge over the past 24 hours at press time. This surge outpaced both BTC and Ethereum [ETH]SOL prices have also increased by 18% over the past seven days.
Interestingly, the Solana memecoin market has also shown strong bullish momentum. CoinGeckoThe market capitalization of Solana memecoins as of July 1 was $7.73 billion, reflecting a 10.4% increase in the last 24 hours.
Noticing the same thing, a user X – Borovik (formerly Twitter) noted,
“Welcome to the Solana cycle.”
Solana ETF in the works
This coincides with recent filings by two asset management firms, Van Eck and 21Shares, both of which filed to launch a Solana spot ETF last week.
According to reports, on June 27, Van Eck made a significant move by filing a Solana Spot ETF application with the U.S. Securities and Exchange Commission (SEC).
The next day, June 28, 21 Shares They also filed their own Solana Spot ETF, increasing investors’ hopes for an upcoming SOL ETF.
Impact on the next US elections
This news was received with great enthusiasm, especially in the context of the upcoming presidential election, with the two candidates having opposing views on crypto.
Former President Donald Trump has been vocal about his pro-cryptocurrency stance, often expressing his support for the industry. In contrast, President Joe Biden has taken a relatively anti-cryptocurrency stance, with fewer instances of favoring digital currencies.
In this regard, Van Buren Capital’s general partner, Scott Johnssonnoted that news of an upcoming Solana ETF may not be favorable to President Biden’s chances in the election, especially among swing or fringe voters. He said:
Source: Scott Johnsson/X
However, not everyone was on the same page, as James Seyffart, an ETF analyst at Bloomberg Intelligence, said in an interview before 21Shares became Solana’s second contender.
“I think VanEck’s case is a kind of call option on the November election.”
He added,
“Under the current SEC administration – based on years of prior approvals and denials for crypto ETFs – a Solana ETF should be denied because there is no federally regulated futures market. But a new White House administration and a new SEC administration that is more open to crypto policies could change that calculus.”
Evolution of SOL prices
Despite mixed feelings, news of a potential Solana ETF sent SOL prices up double digits.
Current data trends also indicate that SOL’s future remains bright, supported by Bollinger Bands signaling reduced volatility and sustained bullish sentiment.
Moreover, the RSI above the neutral level and trending upwards further confirmed this trend.
Source: TradingView