21Shares recently put in an application for a cryptocurrency exchange-traded fund (ETF) based in Solana. This makes the company one of many investment firms that are looking into cryptocurrency ETFs. This entry comes just one day after a similar one from VanEck on Thursday.
James Seyffart, an expert for ETFs, thinks that a Solana-based ETF might not be approved until at least 2025. To go along with this, Reuters reports that the U.S. Securities and Exchange Commission will likely finish reviewing and approving several Ethereum ETFs by July 4.
Solana ETF Market Dynamics
Even with these changes, Eric Balchunas, who is the senior ETF expert at Bloomberg, has been cautious about predicting the Solana ETF’s chances of being approved, saying that it is too early to do so.
The way the market has responded to these files is interesting. After VanEck made their news, the price of Solana (SOL) went up by more than 6%. Even though 21Shares filed, the price of SOL has dropped 4.5% in the last 24 hours. This instability shows how speculative the market is and how investors feel about changes in the way cryptocurrencies are regulated.
The crypto market is still waiting for the SEC to make a decision. It is closely watching for any signs of legal progress or setbacks.
