Here Is the Possible Deadline

The new wave of prosperity in the crypto market could bring a significant benefit for Solana: Now the chances of creating a spot SOL ETF may be even higher.

VanEck’s head of digital asset research, Matt Sigel, believes a spot ETF based on Solana (SOL) could be on the market by the end of 2025.

In an interview with the Financial Times, Sigel noted that under current U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s leadership, the agency has moved away from the traditional approach to interacting with businesses.

Sigel also noted the need to return to a system focused on disclosure, which would create new opportunities for the growth of the crypto industry.

VanEck filed for the Solana ETF in June 2024, calling the decision “a bet that Donald Trump would win.” Sigel believes that the new administration will support the crypto industry and encourage the development of investments in digital assets. He also noted that the crypto industry expects other spot ETFs to emerge and that the VanEck team is currently analyzing the chances of launching different asset classes.

However, SEC representatives reminded that the previous Trump-appointed chairman, Jay Clayton, initiated nearly 80 lawsuits against crypto companies and rejected all applications for spot Bitcoin ETFs.

“It was Gary Gensler’s SEC that broke long-standing tradition with a rules-guided process and regulation through enforcement. “Returning to the usual disclosure-based system will create room for further innovation in this area.”

Spot ETF launch on Solana could happen even sooner, says Matt Sigel, head of digital asset research at VanEck

Daniel Cheung, co-founder of hedge fund Syncracy Capital, predicted that the crypto industry could see spot ETFs on Solana sooner than Siegel expects.

Therefore, Cheung believes that the first slot of Solana ETFs will likely hit the market in the first quarter of 2025. This will allow Solana to surpass Ethereum (ETH) in growth rate and reach the $1000 mark.

I believe the cryptocurrency is headed for a bull market in the coming months that could potentially extend beyond 2021. Some thoughts about the current market structure under the Trump Administration:

1) Trump presidency is a 4-year put option in crypto markets (i.e. Gensler fired, US…

— Daniel Cheung (@HighCoinviction) 6 November 2024

He also described Trump’s presidency as the main impetus for approving the fund with a “four-year call option on the Bitcoin market.” He reminded that the president-elect promised to make the first cryptocurrency a reserve asset and pointed out Gensler’s statement about his possible resignation.

Solana ecosystem is experiencing a new boom

Over the past week, Solana has significantly strengthened the cryptocurrency market, approaching its historical maximum. At the time of writing, the token is trading at $240, up 10% from last week.

SOL price chart | Source: crypto.news

Solana’s market capitalization also increased by 44% to $112 billion, from its all-time high of $77 billion on November 6, 2021.

The increase in market value is due to the increased supply of Solana tokens, which are issued according to an inflationary schedule and reward shares with new SOL tokens. Solana-based applications also achieved record fees and revenue in the last 24 hours, driven by the revival in meme coin interest.

According to data published by analyst Patrick Scott on Platform X, five of the top ten protocols in terms of fee collection in the last 24 hours were on Solana. Automated market maker Raydium broke the record by collecting $11.31 million in fees on November 17, while liquid staking protocol Jito posted the third largest daily fee of $9.87 million on the same day.

Due to the Memecoin craze, half of the top 10 crypto protocols by fees in the last 24 hours were on Solana.

This is either a huge top signal or a radical shift in market activity. pic.twitter.com/iKAbqSYx6j

—Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) 17 November 2024

Additionally, meme coin startup platform Pump.fun had its seventh-largest revenue by collecting $1.65 million in fees. Solana meme coin trading bot Photon was the seventh-largest revenue earner and recorded the fifth-largest daily fee drop at $2.36 million.

What causes Solana to grow?

Solana’s performance was supported by increased user activity on meme coins. According to DeFiLlama, the blockchain’s total value locked (TVL) exceeded $8.3 billion, its highest level since 2021.

Solana’s TVL. Source: DefiLlama

Rapid growth and speculation have made meme coins an investment vehicle with huge profit potential, the exchange’s research division said in a report.

Analysts say one of the reasons for the increased interest in such risky assets is the “financial nihilism” of investors. Following the inflation caused by “helicopter” money during the Covid-19 pandemic, traditional investments such as real estate have ceased to be good havens for capital as they have become susceptible to inflation, the study says.