Loading...
en

Former SEC & CFTC Economists Back Solana - Is a U.S. ETF Next?

Solana ETF approvals could see TradFi giants acquire $6.7B worth of $SOL.

Following a change of administration in the White House, crypto market participants are growing increasingly optimistic about Solana ETF approvals in the United States.

While former SEC Chiefs have come out in support of Solana, the existing obstacles to spot ETF approvals, namely the lack of Solana Futures ETFs, are steadily being removed.

If Solana ETFs are approved in 2025, what kind of inflows could $SOL holders anticipate?

Bitcoin ETFs Hold ~6% of Bitcoin Supply

2024’s approval of Spot Bitcoin ETFs in the United States was a triumphant milestone for the crypto industry. TradFi’s acceptance of the asset class represented a critical step forward for crypto adoption, legitimizing digital currencies in the eyes of billions worldwide.

According to Blockworks data, approximately 6% of circulating Bitcoin, representing $122B worth of $BTC, is held in ETFs. Blackrock’s IBIT commands the lion’s share of $BTC in ETFs, boasting over $58B in AUM (Assets Under Management).

If financial institutions were to acquire 6% of circulating $SOL to support their spot Solana ETF listings, issuers would need to purchase $6.72B worth of $SOL. 

While it may seem disingenuous to compare demand for Solana to demand for Bitcoin, ETP trends from outside the U.S. indicate TradFi players are eager to offer $SOL products to institutional clients.

non US ETPs

A recent research report published by former SEC & CFTC Chief Economists Jim Overdahl and Craig Lewis suggests non-U.S. regulated $SOL ETPs already hold around 2% of circulating $SOL. 

Combined with Solana’s leading role as the center of DeFi in 2025, $SOL ETFs would arguably witness far greater attention and inflows than that of Ethereum. Based on Blockworks data, listed Ethereum ETFs hold only ~2% of the circulating $ETH supply.

Solana Futures ETPs Pave the Way for Approvals

Since VanEck filed for a Solana ETF in July 2024 and kickstarted discussion, experts have almost unanimously agreed that a lack of Solana futures ETFs in the United States represented the biggest obstacle to approval.

Fast forward to January 2025, these obstacles are being brought crashing down. CME Group is expected to launch Solana and XRP futures ETFs by February 10th, clearing the path to spot approvals later this year.

$SOL futures ETFs have encouraged TradFi players to re-file their spot Solana applications, with VanEck, Canary Funds, Bitwise, and 21Shares submitting new 19b-4s on January 28. 

Previous filings were rejected by Gensler’s SEC in August 2024, but changes in the White House, the SEC, and the appointment of Solana investor David Sacks as the President’s Crypto Czar have markets optimistic about Solana ETF approvals. 

polymarket

According to odds dictated by Polymarket, crypto’s leading prediction market, spot Solana ETFs have an 87% of being approved by U.S. regulators in 2025.

Read More on SolanaFloor

Decentralized storage hits the Solana dApp store

GenesysGo Nodes Increase as shdwDrive Mobile Hits Solana dApp Store

What’s Next For Crypto in 2025?

Solana Six

Get the latest news from SolanaFloor in your inbox.


Tags


Related News