The SEC has recently acknowledged four new ETF applications related to Solana, raising hopes for their approval. Analysts are divided, with some believing that Litecoin or Dogecoin ETFs may have a better chance of being approved first. However, the SEC seems to be focusing on Solana-related filings.
On Tuesday, the SEC began a public comment period for the Canary Solana Trust, proposed by Canary Capital. It also recognized similar applications from VanEck, 21Shares, and Bitwise. This marks the start of the review process, giving the SEC 21 days to decide on these applications. Although delays are common, some analysts think that 2024 could see approvals for Solana and other altcoins.
Market experts suggest that Litecoin and Dogecoin ETFs might be approved before those for Solana or XRP. Eric Balchunas from Bloomberg shared approval probabilities, ranking Litecoin first, followed by Dogecoin, Solana, and XRP. He mentioned that filings under the 1940 Act or alternative structures could still succeed, even if spot ETFs face hurdles.
Grayscale’s Solana ETF application was recognized last week, furthering regulatory consideration. The focus now shifts to whether the SEC will recognize other altcoins like XRP or Dogecoin. Asset managers are also showing interest in Solana. For instance, Franklin recently filed for a Solana Trust, which may lead to an ETF submission soon.
Prediction markets are adjusting their expectations as well. Polymarket, a leading forecasting platform, currently shows an 82% chance of a Solana ETF approval this year.
