Following the news of recent days, in which it emerged that the probabilities of an approval of the Ethereum spot ETF by the SEC have gone from 25% to 75%, crypto investors are starting to bet that the next chosen coin to cross the doors of Wall Street will be Solana.
Nothing official yet: these are just rumors that, however, would potentially take on a basis of truth if the investment instrument on ETH is indeed approved today or tomorrow.
In the meantime, let’s take a look at the price action of Solana and see where the crypto is headed.
All the details below.
Summary
News and rumors crypto: the next ETF will be on Solana?
Dopo le crypto news trapelate lunedì sera, con Coindesk e gli ETF analyst di Bloomberg che segnalavano un’accelerazione del processo di revisione del form 19b-4s da parte della SEC in vista della presunta approvazione dei fondi quotati in borsa su Ethereum, the first rumors of a similar outcome for Solana are emerging.
The regulatory approval of spot ETH ETFs, expected today or at the latest tomorrow with the first deadline of the request from VanEck, could indeed revolutionize the way traditional finance interacts with emerging cryptocurrencies.
In particular, if the agreement between Gensler and the applicants were to go through, the federal agency responsible for overseeing the US markets would necessarily have to abandon its thesis that Ethereum (and implicitly other similar cryptocurrencies like Solana) are considered as security.
Solana still represents the crypto closest, logically speaking according to an estimate based on market capitalization, to the top two heads of the crypto market, excluding the stablecoin USDT and the controversial utility token BNB managed by the exchange Binance.
Worth noting is also how Solana has recently gained the favor of the fund Franklin Templeton, which stated that the crypto could soon become the world’s n°3, surpassing the two aforementioned coins.
So if the SEC, and more generally the financial sector of Wall Street, were to definitively open up to the crypto world by opening the doors to regulated investments, it is likely that the next choice will be the so-called “Ethereum-Killer”.
Regarding these rumors and following the news about the ETH ETF, Matrixport co-founder Daniel Yan suggested to his followers to pay more attention to the evolution of Solana’s price rather than that of Ethereum.
We point out in any case that at the moment there are no pending applications with the SEC for the approval of an ETF on Solana.
Non escludiamo tuttavia che in un contesto di ottimismo diffuso gli stessi emittenti che stanno spingendo per la liberalizzazione degli investimenti in ether, possano pensare ad un nuovo fondo quotato in borsa su SOL, con Grayscale che potrebbe facilmente convertire il suo Trust in ETF, come accaduto con Bitcoin a gennaio.
Analysis of SOL price after the latest news on the Ethereum ETF
With the latest news regarding the increased likelihood of the approval of the Ethereum ETF, Solana and other crypto have seen a significant rise in prices, suggesting the start of a altseason.
In particular SOL on Monday, May 20 accompanied the price rise of ETH which printed a monstrous daily candle of +19.2% adding 70 billion in market capitalization in a few hours.
The crypto of Anatoly Yakovenko on the same day recorded a growth of 9.90%, enough to reclaim the level of 180 dollars and establish itself as one of the top gainers in the market.
Observing the chart, we can clearly see how following the news of the ETFs, Solana has approached the recent local high of 209 dollars, reinforcing the hypothesis of a bull rally resumption after the retracement in March and April.
Decent volumes accompany the movement of the bull, even if the evolution of the open interest does not highlight particular bullish attitudes from the derivatives traders.
The game is currently being played around the resistance zone of 200 dollars: if in the case of an approval of the Ethereum ETF, Solana manages to break this level, then we could hypothesize a continuation of the bull trend and an attack on the historical highs at 260 dollars.
If instead the resistance is not broken, it will probably be necessary to wait a few weeks before the FOMO returns to invade the altcoin market.
Eyes on the SOL chart even in case of rejection or delay of the approval of the ETH ETF: if it outperforms its rival coin, we will have one more signal to be bullish in the medium term, if instead it underperforms, we will need to rebalance expectations.
What would happen instead in the case of the approval of a spot ETF on Solana?
Given that the latest news on ETH has allowed the market to move 70 billion dollars in capitalization, we can believe that there will be a similar effect even if with a smaller magnitude.
It’s difficult to make predictions at this point, but likely in the case of this scenario, we can expect at least the breaking of historical highs.
