To date, the SEC has not approved any cryptocurrency ETFs other than Bitcoin (BTC) and Ethereum (ETH) spot ETFs. However, this is expected to change.
While the SEC has several altcoin ETF applications pending, including XRP, Solana (SOL), and Dogecoin (DOGE), the SEC has postponed these decisions. However, the deadlines for these applications are approaching, and approvals are expected to follow suit.
At this point, Solana is one of the altcoins waiting for ETF approval at the SEC, and SOL is expected to make a big move with the contribution of ETFs.
At this point, Bitwise CIO Matt Hougan said that Solana has all the reasons for a year-end rally.
According to The Block, Matt Hougan said Solana has all the ingredients for a year-end rally, driven by inflows into ETFs and a growing number of companies adding SOL to their balance sheets.
Hougan pointed to the large number of asset managers filing for spot SOL ETFs as a key driver of the SOL rally.
“Based on ETF inflows and institutional accumulation, a projection has emerged that Solana (SOL) could begin a rally by the end of the year.
A ‘Solana season’ will begin with ETF inflows and Solana’s institutional accumulation.”
Recalling that Bitcoin and Ethereum followed the same path and rose under the same conditions, Hogan said, “The launch of spot ETFs and institutional accumulation are processes that Bitcoin and Ethereum also went through. Once these conditions were met, Bitcoin and Ethereum increased approximately threefold.”
Hougan, noting that Solana technology also supports the bullish outlook, said, “Solana’s strengths are speed and low costs. Solana could outperform Ethereum in stablecoins, real-world assets (RWA), and decentralized finance (DeFi).”
The SEC is expected to rule on their approval by October 10. If approved, several SOL ETFs could launch simultaneously in the fourth quarter of this year.
*This is not investment advice.