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- 21Shares has taken the lead with VanEck in pursuing the Spot Solana ETF
- An increase in Solana flows is expected if applications are accepted.
Solana [SOL]The market’s performance over the past few years has recently attracted the attention of many Wall Street institutions. Therefore, it is not surprising that some of them are now very keen on the idea of creating a Solana spot ETF.
21 stocks moving
In a move to capitalize on the growing interest in SOL, Swiss asset management firm 21Shares has filed to request To list the Solana ETF in the US. This filing closely follows a similar application filed by its competitor – VanEck.
21Shares is based on the legal classification of altcoins. The filing assumes that Solana is not considered a security under US law. This distinction is important because security ETFs face more stringent regulations, compared to standard ETFs.
If the SEC classifies it as a security, 21Shares may withdraw its application altogether. This potential withdrawal may stem from additional registration requirements that come with security ETFs, which 21Shares may not be willing to meet.
How will SOL be affected?
The potential Solana ETF is expected to boost the price of Solana (SOL), similar to the way Bitcoin’s price rose after its spot ETF was approved.
In fact, recently analysis By GSR Markets actually used a 2.3x Bitcoin price rise as a starting point. It should be noted that they acknowledged that Solana ETFs would likely not attract the same level of investment. To account for this, GSR instead explored three scenarios based on potential investment flows, compared to Bitcoin ETFs.
In the case of the bears, they assumed a 2% increase in inflows to Sol. This assumes a low level of interest in the Solana ETF, with only 2% inflows compared to Bitcoin.
Next comes the base case scenario, which would result in 5% inflows relative to Bitcoin. This would be a more moderate scenario based on actual investment activity in Solana products from 2021 to 2023, excluding 2024 to avoid the impact of Bitcoin ETFs.
In the most optimistic and bullish scenario, GSR took into account relatively higher inflows to SOL in 2022 and 2023. It estimated that the altcoin could attract 14% of inflows, compared to Bitcoin on average.
Source: GSR
At press time, SOL was trading at $141.80, with its price down 2.53% over the past 24 hours. In fact, its trading volume during the mentioned period decreased by 33.23% on the charts as well.
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Source: Santiment
