Will Solana ETF receive approval from SEC? Here's what you need to know

Solana (SOL) shed 5% of its value on Friday as top industry voices aired their views on the odds of the Securities & Exchange Commission (SEC) approving a Solana ETF. This follows asset managers VanEck and 21Shares filing S-1 registration statements for their respective spot SOL ETFs.

Crypto experts share their thoughts on potential Solana ETF approval

Solana was the center topic of discussion across several cohorts in the crypto community on Friday following VanEck and 21Shares' recent filing for a spot Solana ETF. The increased attention surrounding Solana is evidenced by a hike in its social volume, as seen in the chart below.

SOL Social Volume

Discussions and predictions from top industry voices about the odds of SOL ETF approval seem to be driving the social volume surge.

Considering that crypto ETFs have become a major subject among investment firms following the high volumes seen in Bitcoin ETFs over the last six months, introducing a Solana ETF may solidify the token's growing market influence.

Bloomberg analyst Eric Balchunas suggested that SOL ETFs won't be approved this year may only be possible if the current SEC administration and the White House see a change after the November presidential election.

"The odds of a Solana ETF being approved in next 12mo are tied at the hip to the odds of a change in POTUS and safe to say the chances of both are higher today then they were yesterday.. Altho we not giving any exact number on this yet. Way too early," he said

In line with Balchunas's prediction, Scott Johnsson, General Partner at Van Buren Capital, speculated that the SOL ETF move might affect the upcoming elections, with a "60+% chance of a new admin and/or the current admin getting scared straight through this election that they loosen things considerably."

Balchunas added that the major limitation to a Solana ETF approval would likely stem from a lack of Solana futures in the US.

Adam Cochran, partner at crypto venture capital firm Cinneamhain Ventures, stated that VanEck's and, by extension, 21Shares' move may be "reckless” as SOL's futures volume in international exchanges does not meet the SEC's requirements. Other analysts have stated that the approval of Bitcoin and Ethereum ETFs form a pattern that begins with the approval of a crypto futures ETF and eventually culminates in the approval of its spot ETF counterpart.

In addition, the SEC previously classified SOL as a security in at least two separate lawsuits. This may dampen the chances of its ETF approval.

Meanwhile, SOL is down by almost 5% in the past 24 hours as FOMO from VanEck's initial filings yesterday seems to have faded. An earlier report based on Santiment data predicted that Solana could see a correction due to the social volume spike that accompanied its rise on Thursday.