Why The Road To A Solana ETF Is Fraught With Obstacles

This year could very well mark the start of a golden age for cryptos. Donald Trump, ready to renovate the American financial landscape, promises a more flexible and dynamic approach. Between his taking office and enticing promises, the idea of a digital eldorado attracts investors. But the road seems fraught with obstacles, especially for Solana-based ETFs, slowed down by heated regulatory battles.

Headwinds for Solana ETFs

The Solana-based ETFs are not yet ready to light up Wall Street. Despite Donald Trump’s election and his favorable stance towards the crypto industry, James Seyffart from Bloomberg Intelligence remains skeptical.

According to him, even with a pro-crypto administration, the first Solana ETFs may not arrive until 2026. Why such a wait?

• A colossal regulatory delay: the SEC review process takes between 240 and 260 days;
• An ongoing legal battle: the SEC considers Solana to be an unregistered security, paralyzing any progress towards an ETF;
• Divided hopes: some analysts, like Matthew Sigel from VanEck, remain optimistic about approval before 2025, while others mention a much longer horizon.

https://twitter.com/0xGumshoe/status/1879287381473521875

Yet, a light at the end of the tunnel remains: as user Gum (@0xGumshoe) reminds us, a Solana ETF could attract between $2.7 and $5.2 billion, boosting the value of SOL. The question is not if, but when.

Crypto Regulation: Towards a Strategic Turning Point

The specter of regulation still hangs over cryptos. Under Joe Biden, the SEC has shown its teeth, with hundreds of lawsuits against industry companies. Trump promises a clean break, aiming to turn the United States into the world capital of crypto.

However, the market remains cautious:

• The Bitcoin and Ethereum ETFs paved the way in 2024, but no notable advances for altcoins like SOL or XRP;
• Requests for ETFs indexed to crypto baskets remain pending;
• Previous repressive actions continue to stifle innovation.

Eric Balchunas, also an analyst at Bloomberg, believes that these ETF proposals are “call options“ on Trump’s victory. In short, the future of crypto ETFs depends on a regulatory chess game where every piece counts. The key piece? An administration willing to bet on innovation.

Moreover, record inflows into the Ripple ecosystem give clues about a potential XRP Spot ETF. With such momentum, investors are watching every move closely, as the future of cryptos, caught between hope and regulation, hangs by a thread.