US elections will be decisive for Solana ETFs

The Chicago Board Options Exchange (CBOE) has filed an application with the U.S. Securities and Exchange Commission (SEC) for Solana exchange-traded funds (ETFs). This application informs the SEC about proposed changes by a self-regulatory organization within the industry. The SEC then solicits public comments and publishes all feedback.

The CBOE proposes to trade the Solana ETF spot for VanEck and 21Shares. The SEC has until mid-March 2025 to respond to this proposal. This process is similar to that for Bitcoin and Ethereum ETFs. Analysts believe the approval will depend on the 2024 presidential election. If Donald Trump wins, the chances of approval could increase, while a Biden victory might reduce these chances. ETF analyst Eric Balchunas stated:

“If Biden wins, these are probably doomed. If Trump wins, anything is possible.”

Nate Geraci, president of the ETF Store, indicated that the decision period begins once the SEC accepts the applications. The value of Solana has risen by more than 6.47% in the past 24 hours and is now trading at $141.07. Matthew Sigel, head of research at VanEck, spoke about U.S. cryptocurrency regulation and said that a Solana ETF is possible, especially given the smooth approval of Ethereum’s spot ETF.

Recent developments have changed the prospects for Solana’s ETF spot. ETF analyst James Seyffart pointed to the regulatory challenges that Solana may face. He said the following:

“A SOL ETF would have significant demand compared to other digital assets (except BTC and ETH). But the SEC does not treat SOL like ETH. Lawsuits against Coinbase and Kraken claim that ‘Solana is a security,’ complicating the process.”

The approval of Solana ETFs can be heavily influenced by the political situation. Analysts believe that the policy of the next administration will be crucial. A Trump victory in 2024 could increase approval chances, given the more crypto-friendly stance of the Republicans. A Biden victory could lead to stricter regulations and lower approval chances.

The proposal for the Solana ETF spot has elicited reactions from investors and analysts. The public feedback that the SEC gathers will influence the final decision. The market reacted positively, as seen in the recent price increase of Solana. Investors are closely monitoring developments, aware of the impact the decision will have on the crypto market.

The SEC has until mid-March 2025 to decide on the Solana ETFs. The 2024 presidential election is a key factor that can influence the outcome. Despite regulatory challenges, support from a potential Trump administration could increase approval chances. While the SEC reviews public comments and the proposal, the market waits to see how these developments will shape the future of cryptocurrency ETFs.