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Crypto: After Ethereum, it's time for the Solana ETF!

Thu 23 May 2024 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Regulation Crypto

The crypto industry is buzzing following the anticipated approval of an Ethereum ETF by the SEC. This anticipation has sparked speculation about the next cryptocurrency that could benefit from such approval. According to Daniel Yan, co-founder of Matrixport, Solana (SOL) could be next on the list.

Crypto Solana ETF Ethereum

Crypto: The Impact of the Ethereum ETF on Solana!

The approval of a spot Ethereum ETF could have a domino effect on other cryptos, particularly Solana. Let’s remember that the approval of a spot Bitcoin ETF led to a 12% increase in the ETH/BTC pair the following week. Yan suggests that Solana could experience similar momentum if the Ethereum ETF is approved.

Yan recommends crypto investors consider buying Solana against Ethereum (SOL/ETH) in anticipation of the Ethereum ETF approval. This strategy is not yet overcrowded compared to the recent Ethereum surge, which could offer an attractive investment opportunity.

Prospects of Approving a Solana ETF

The filing of a spot ETF for Solana could be challenging because there is not yet an ETF on SOL futures. Unlike Bitcoin and Ethereum, which had actively traded futures ETFs at the time of their spot ETF approvals, Solana lacks this critical step, which could hinder its immediate consideration for a spot ETF.

Although no Solana ETF is currently approved in the United States, alternatives like the Grayscale Solana Trust (GSOL) and products such as VanEck’s Solana ETN and 21Shares’ Solana ETP offer exposure to SOL prices, albeit through derivatives. These products allow crypto investors to trade SOL indirectly, reflecting its price movements.

The potential approval of a spot Ethereum ETF by the SEC has the potential to transform the crypto market, with Solana poised to benefit from this regulatory development. Investors and market participants will closely monitor the developments because they could signal new investment opportunities and innovation in the digital asset space.

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Eddy S. avatar
Eddy S.

Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.