📌 Former SEC and CFTC economists favor solana – will a US ETF be next?
– After the change of administration in the White House, cryptocurrency market participants are increasingly optimistic about the approval of the solana ETF in the US.
Although former SEC officials are in favor of solana, the current obstacles to dotcom ETF approval, namely the lack of a solana futures ETF, are
What inflows can $SOL holders expect if the solana ETF is approved in 2025? TradFi’s adoption of this asset class is a major step forward for cryptocurrency adoption, legitimizing digital currencies in the eyes of billions of people around the world.
According to Blockworks, about 6% of bitcoin in circulation (in BTC) 122 billion) is invested in ETFs; most of the $BTC in ETFs is held by BlackRock’s IBIT fund, which has more than $58 billion in AUM.
Financial institutions support ETF listings with tradable $. To get a 6% SOL, an issuer would need to purchase $6.72 billion worth of $SOL.
While comparing demand for Solana to bitcoin may seem disingenuous, trends in ETPs outside the U.S. indicate that TradFi players are looking to offer $SOL-based products to institutional clients.
the SEC and CFTC. According to a recently released study by former chief economists Jim Oberdahl and Craig Lewis, unregulated $SOL ETPs already account for about 2% of traded $SOL.
Solan will become the center of DeFi in 2025. Coupled with this, $SOL ETFs are likely to witness much more attention and inflows than Ethereum; according to Blockworks, Ethereum-listed ETFs hold only ~2% of $ETH in circulation.
VanEck in July 2024. Since VanEck’s July 2024 solan ETF filing and discussions, experts have almost unanimously considered the lack of a solan futures ETF in the U.S. to be the biggest hurdle to approval.
By January 2025, CME Group is expected to launch a solanium ETF and XRP futures ETFs are expected to be launched by Feb. 10, paving the way for spot approvals this year.
The $SOL futures ETF prompts TradFi players to resubmit spot applications for Solana, while VanEck, Canary Funds, Bitwise and 21Shares A new 19b-4 application has been filed.
The previous application was rejected by the SEC by Gensler in August 2024, but changes in the White House, the SEC and the appointment of Solana investor David Sachs as a cryptocurrency official under the president have made the markets Optimistic.