Solana ETFs in Focus: New Crypto Dynamics at the SEC

Amid a regulatory upheaval at the US Securities and Exchange Commission (SEC), new applications aim to list and trade Solana ETF shares. These developments coincide with the announcement that SEC Chairman Gary Gensler will leave the agency on January 20 – the exact day of future President Donald Trump's second inauguration. Trump, who once promised to make the USA the "crypto capital of the planet," revives hopes for a more favorable regulatory environment. This sentiment is in clear contrast to the Gensler era, which was characterized by increased scrutiny of digital assets. The proposed Solana ETFs aim to provide investors with regulated access to the blockchain's native token, SOL. In Cboe's applications, it is argued that Solana's decentralized network and trading environment are resistant to manipulation, similar to the arguments that led to the approval of Bitcoin and Ethereum ETFs earlier this year. Solana's price saw an increase of 21.1% last week, reaching a high of $263.7 on Thursday before settling at around $253, according to CoinMarketCap data. Solana is the fourth-largest cryptocurrency with a market capitalization of over $120.5 billion. The wave of new applications fits into an eventful year for crypto ETFs. Spot Bitcoin ETFs debuted in January, followed by Ethereum ETFs in July, which together managed to gather over $30 billion in assets under management, according to UK asset manager Farside Investors. Bitcoin's price is approaching the $100,000 mark with expectations of a more favorable regulatory environment. The urgent actions of issuers reflect a broader trend towards increasing acceptance of crypto products. In recent weeks, there have been applications for ETFs tracking XRP and Litecoin, as well as attempts by Grayscale Investments to convert its Digital Large Cap Fund into an ETF. The applications still require SEC approval before the funds can be traded, with the review process expected to continue under new agency leadership until 2025. Meanwhile, the crypto industry is inspired by Trump's vision and hopes for a friendlier regulatory era.