The odds of a Solana summer are increasing by the day, with 21Shares becoming the second issuer to file for a spot Solana ETF.
VanEck and 21Shares are typically the first firms to apply for crypto ETFs, as was also the case with Ethereum. The big question now remains whether BlackRock and Fidelity will join the race as well.
Either way, Solana now appears poised to resume its bullish trajectory, especially if the SEC sees a major overhaul after November’s US presidential elections. Smart money traders are also watching out for the Solana meme coins that could show a significant bounce after the ETF news.
Will The SEC Approve Solana ETFs?
Bloomberg analyst James Seyffart believes that 21Shares’ decision to apply for spot Solana ETF appears smart after the US presidential debate yesterday.
Experts called sitting president Joe Biden’s performance a “disaster” which significantly increased the odds of a Trump presidency. In such circumstances, the US Securities and Exchange Commission could be looking at a new Chairperson after November.
It remains highly unlikely that the current SEC Chair Gary Gensler would approve the Solana ETFs. VanEck and 21Shares’ S-1 applications treat Solana as a commodity, despite the Commission calling it a security in several lawsuits.
The current administration also requires crypto assets to have a regulated futures market before the approval of their spot ETFs. While Bitcoin and Ethereum did meet this requirement, Solana does not.
However, this could change under a new SEC, perhaps led by the pro-crypto Commissioner Hester Peirce.
Peirce has stated several times during her dissents that the Commission has unfairly used Section 6(b) of the Securities Act to reject crypto ETFs. She has also criticized the requirement of surveillance-sharing agreements and the Futures market for spot ETF approvals.
As a result, the Solana ETFs could have a considerable chance of approval, provided that Trump does score a victory in November.
SOL, Solana Meme Coins To Skyrocket Post ETF Approval
Popular crypto firm GSR believes that a potential spot ETF approval could be incredibly bullish for Solana. In fact, it claims that the Solana price could surge by as much as 9 times post-approval.
Experts are also eyeing Solana meme coins, considering that they act as beta plays on SOL. For instance, Dogwifhat shows a strong correlation with Solana, often delivering 4x gains in the same direction.
If the Solana price indeed skyrockets post-ETF approval, WIF could also deliver outsized returns and could trade as high as $10.
Smart money traders are also bullish on new meme coins such as Base Dawgz, with some believing that it could offer up to 100x gains.
Base Dawgz is native to the Base chain and is expected to emerge as one of the biggest meme coins in the ecosystem, following in the footsteps of Brett. However, being a multi-chain meme coin, DAWGZ can benefit from the bullish strength of several different cryptocurrencies, including Solana.
Its innovative concepts such as share-to-earn and staking rewards have also caught the attention of investors.
Another meme coin to watch out for is Sealana, a seal-themed token that is set to go live on July 2nd. SEAL has already raised over $6 million in its presale and is still in significant demand before its IEO.
Similar to Base Dawgz, experts believe that Sealana could be the next 100x meme coin.
