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Spot Bitcoin and Ethereum ETF provider VanEck has now filed for a Solana ETF, submitting its S-1 application on Thursday.
Head of Digital Assets Research at VanEck Matthew Sigel also claimed that Solana is a commodity, a viewpoint that is in stark contrast to the SEC.
The Solana price surged to $150 after the ETF news broke, however, has since pulled back to $145. Nevertheless, experts remain bullish on SOL’s short and long-term prospects, with some even expecting a push towards new highs in July.
Solana meme coins and Layer-2 tokens have also bounced on the ETF news while new tokens such as Sealana, Base Dawgz and Mega Dice are gearing up for explosive IEOs.
Will VanEck’s Solana ETF Be Approved?
Bloomberg analyst Eric Balchunas believes that a spot Solana ETF approval largely depends upon the results of the upcoming US presidential elections. He claims it to be extremely unlikely that the current SEC administration, led by Chair Gary Gensler, will approve the SOL ETF.
For instance, the Commission has sued prominent crypto exchanges including Binance and Coinbase for the sale of illegal securities, with SOL being one of the assets mentioned in the lawsuits.
Similarly, the SEC under Gensler has made it mandatory for crypto assets to have a futures market of “significant size” before they could considered for spot ETFs. Notably, both Bitcoin and Ethereum had Futures ETF while Solana does not.
However, the Chief Legal Officer of the Variant Fund Jake Chervinsky believes that nothing is stopping the SEC from approving Solana spot ETFs without a futures market. Bloomberg’s Balchunas concurs with this assessment, claiming that the pro-crypto SEC Commissioner Hester Peirce may have a much more favourable view on the matter as compared to Gensler.
Indeed, Peirce – in several of her dissents – has noted that the SEC has applied “a heightened standard under the Exchange Act Section 6(b)” to reject crypto ETFs. She also believes that cryptocurrencies do not need to have a regulated futures market before being considered for spot ETFs.
Consequently, the spot Solana ETF has a high likelihood of being approved under Pierce – or another SEC Chair with a similar viewpoint.
Considering that VanEck has not yet filed a 19b-4 form, there is no official deadline for when the SEC needs to reject or approve the ETF. Therefore, an approval seems likely to occur in early 2025, especially if Donald Trump wins the upcoming elections.
Could Solana Price Reach $200 In July? Key Levels To Watch
Unfortunately for the bulls, VanEck’s spot ETF application is not enough for the Solana price to resume its bullish trajectory. However, things may turn for the better if TradFi giants such as BlackRock and Fidelity jump into the race.
The Solana price currently remains tethered to Bitcoin, waiting for BTC to successfully restest the $60,000 support and push towards new highs.
Meanwhile, the Solana bulls need to defend the $123 support level, considering a breakdown below could send SOL to double digits.
Considering the present circumstances, it appears improbable that SOL would be able to reclaim the $200 price mark. However, a display of bullish strength from BTC could turn things around, especially if the Solana price manages to breach the $163 resistance level.
New Solana Meme Coins, Layer-2 Tokens Expected To Explode In July
While SOL may depend on Bitcoin’s bullish strength, Solana meme coins and Layer-2 tokens do not. Tokens such as Book of Meme, Popcat and Ponke have been skyrocketing, irrespective of Solana’s price trajectory.
All eyes are now on Sealana – a new seal-themed Solana meme coin that is scheduled to go live on DEXs on July 2nd.
The SEAL presale has already raised over $6 million in its ICO while investors continue to stack the new meme coin at its discounted price before its upcoming launch. Experts expect the hype surrounding the token to result in an explosive price action post-IEO, with some even hinting at 10x gains.
Similarly, a multi-chain meme coin Base Dawgz is in high demand among smart-money investors. DAWGZ is native to the Base chain, however, it is also live on other blockchains including Ethereum, Solana, Bnb Smart Chain and Avalanche.
Owing to its multi-chain status and innovative concepts such as share-to-earn, the meme coin has raised over $2 million during its ongoing presale. Analysts are expecting Base meme coins to dominate the second leg of this bull cycle and Base Dawgz could potentially emerge as a top performer.
Popular crypto casino Mega Dice has also launched its presale cryptocurrency, which has been an instant hit. DICE has already raised over $1.5 million in a few short weeks, with experts projecting it as one of the top GameFi projects on Solana.
*Cryptonomist did not write the article or test the platform.
