Given the notable success of the Bitcoin and Ethereum Spot ETFs, there has been significant pressure from crypto leaders and asset management companies toward a Solana Spot ETF. Many believe that a SOL spot ETF is reasonable and could attract a similar success due to the fact that Solana is the most actively used network in the sector.
Billions To Be Unlocked By Solana ETFs
Solana may be ready for a dramatic change in institutional acceptance, as analysts forecast that SOL Spot Exchange-Traded Funds (ETFs) could attract billions of dollars, akin to Bitcoin and Ethereum, once it is introduced.
The latest projections concerning the SOL ETF introduction came from SolanaFloor. According to the platform, the SOL spot ETF is likely to draw in about inflows in the first year following its inception in the crypto market. In the report, the platform drew attention to the remarkable growth and success of the Bitcoin and Ethereum spot ETFs, which have witnessed exponential capital inflow so far. Being the most performant and actively used network, SolanaFloor believes that SOL would experience a comparable performance and inflows.
After a thorough analysis, the experts stated that a whopping $5.52 billion in inflows might be recorded within the first year. It is important to note that the forecast for the fund aligns with some of the world’s top financial firms, such as JPMorgan, which predicted in January this year that SOL ETFs may see inflows ranging from $2.7 to $5.2 billion.
With this projection, a Solana ETF, if authorized, would be a big step in establishing the asset as a legitimate investment instrument. This would trigger massive interest from retail and institutional investors who are eager to gain exposure to crypto assets through regulated methods.
The network has undergone significant development to become the epitome of blockchain use, and several asset managers are starting to recognize this shift. VanEck, a leading asset management firm, filed for the first SOL ETF in July 2024, with approvals now looking guaranteed.
Furthermore, issuers such as Franklin Templeton and Fidelity are eager to have the official approval as quickly as possible. In the meantime, the US Securities and Exchange Commission (SEC) has requested that all issuers submit amended filings by July 31st, with a final deadline of October 10, 2025.
SOL ETFs To Outperform Ethereum ETFs?
Since their inception, Bitcoin and Ethereum spot ETFs have revolutionized crypto investments. ETH’s introduction into conventional markets has contributed to the establishment of a standard by which future cryptocurrency ETF performance can be evaluated.
However, SolanaFloor believes that SOL ETFs could outperform Ethereum ETFs despite their remarkable performance so far. “Bearing Solana’s considerable momentum in mind, one can reasonably expect that SOL ETFs could witness greater demand and inflows than Ethereum, without dethroning Bitcoin itself,” the platform stated.
At launch, the platform claims that SOL ETFs will draw inflows of $2.9 billion, considering its current price level. Meanwhile, a $400 SOL could see ETF AUM rise to $11.6 billion within a year of debut under ideal market circumstances.
Featured image from Unsplash, chart from Tradingview.com
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