Following VanEcks Lead 21Shares Submits Application for a Spot Solana ETF Speculations Arise About BlackRocks Involvement
The chances of a Solana summer are growing day by day, as 21Shares becomes the second issuer to file for a Solana ETF. VanEck and 21Shares are typically the first firms to apply for crypto ETFs, just as they did with Ethereum. The big question now is whether BlackRock and Fidelity will also join the race.
@21Shares has just filed an S-1 for a @solana ETF. pic.twitter.com/drVT6kvtzr
— Cointelegraph (@Cointelegraph) June 28, 2024
Either way, Solana is now looking ready to continue its upward trajectory, especially if the SEC undergoes a major overhaul after the US presidential elections in November. Smart money traders are also keeping an eye on Solana meme coins, which could experience a significant bounce following the ETF news.
Will the SEC Approve Solana ETFs?
Bloomberg analyst James Seyffart believes that 21Shares’ decision to apply for a spot Solana ETF is a smart move, particularly after the US presidential debate yesterday.
Looking smarter after that debate performance from Biden last night https://t.co/3UxcSVwWHD
— James Seyffart (@JSeyff) June 28, 2024
Experts have criticized sitting president Joe Biden’s performance in the debate, which has increased the likelihood of a Trump presidency. In such circumstances, there may be a new Chairperson at the US Securities and Exchange Commission after November.
It is highly unlikely that the current SEC Chair Gary Gensler would approve the Solana ETFs. VanEck and 21Shares’ S-1 applications treat Solana as a commodity, while the Commission has referred to it as a security in several lawsuits.
The current administration also requires crypto assets to have a regulated futures market before their spot ETFs can be approved. While Bitcoin and Ethereum meet this requirement, Solana does not.
However, this could change under a new SEC, possibly led by pro-crypto Commissioner Hester Peirce.
Peirce has repeatedly stated in her dissents that the Commission has unfairly used Section 6(b) of the Securities Act to reject crypto ETFs. She has also criticized the requirement of surveillance-sharing agreements and the futures market for spot ETF approvals.
As a result, the Solana ETFs could have a significant chance of approval, provided that Trump wins in November.
SOL, Solana Meme Coins to Soar After ETF Approval
GSR, a popular crypto firm, believes that the approval of a potential spot ETF could have a highly bullish effect on Solana. In fact, it claims that the Solana price could surge by up to 9 times after approval.
Experts are also keeping an eye on Solana meme coins, as they act as beta plays on SOL. For example, Dogwifhat has a strong correlation with Solana and often delivers 4x gains in the same direction.
If the Solana price does skyrocket after ETF approval, WIF could also provide significant returns and potentially trade as high as $10.
Smart money traders are also bullish on new meme coins like Base Dawgz, with some believing it could offer gains of up to 100x.
Base Dawgz is native to the Base chain and is expected to become one of the biggest meme coins in the ecosystem, following in the footsteps of Brett. As a multi-chain meme coin, DAWGZ can benefit from the bullish strength of various cryptocurrencies, including Solana.
Its innovative concepts, such as share-to-earn and staking rewards, have also attracted investor attention.
Another meme coin to watch out for is Sealana, a seal-themed token that will launch on July 2nd. SEAL has already raised over $6 million in its presale and is in high demand before its initial exchange offering (IEO).
Similar to Base Dawgz, experts believe that Sealana could be the next 100x meme coin.