The SEC has acknowledged four new Solana ETF applications, which has led to increased speculation regarding their approval. Analysts claim that Litecoin and Dogecoin may have a higher chance of winning approval.
The SEC has acknowledged four additional Solana ETF applications, which has fueled speculation regarding its potential approval. The SEC appears to be prioritizing Solana-related filings, despite the fact that some analysts believe Litecoin or Dogecoin ETFs have a greater chance.
The SEC initiated a public comment period for the Canary Solana Trust, an ETF that Canary Capital has proposed, on Tuesday. Simultaneously, it identified applications from VanEck, 21Shares, and Bitwise that were similar. This step commences the review process, providing the SEC with 21 days to approve, reject, or extend its evaluation. Although there are frequent delays, analysts anticipate that Solana and other altcoins may receive approvals in 2024.
Market analysts anticipate that the likelihood of approval for Litecoin and Dogecoin ETFs may be greater than that of Solana or XRP. Eric Balchunas of Bloomberg recently disclosed their approval probabilities, which prioritized Litecoin, Dogecoin, Solana, and XRP. Despite the challenges that spot ETFs may encounter, he observed that filings under the 1940 Act or alternative structures could still survive.
Grayscale’s Solana ETF application was acknowledged last week, indicating yet another stride toward regulatory consideration. The current focus is on whether the SEC will extend the same recognition to other altcoins, such as Dogecoin or XRP. Meanwhile, asset managers continue to demonstrate enthusiasm for Solana. For instance, Franklin recently applied to a Solana Trust, which is most likely to result in an ETF submission shortly.
There is also an adjustment in the expectations of prediction markets. Polymarket, a significant forecasting platform, presently indicates an 82% likelihood of the approval of a Solana ETF this year. The SEC’s decision procedure may extend beyond Solana, as other altcoins, such as Hedera, have pending ETF applications.
Ultimately, the SEC’s categorization of tokens as securities or commodities remains a crucial element in approving ETFs. After regulatory clarification, it is feasible for numerous altcoin ETFs to obtain approval in tandem. Until then, Solana appears to be the primary focus of the SEC’s attention.
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