The recent filings for spot Solana (SOL) exchange-traded funds (ETFs) from various financial institutions have been officially added to the Federal Register as of Feb. 18. This move gives the US Securities and Exchange Commission (SEC) a 240-day window to either approve or deny these filings. Among the companies seeking approval for a Solana ETF are VanEck, 21shares, Bitwise, and Canary Capital, with Grayscale also submitting their filing on Feb. 12.
The anticipation surrounding the approval of a Solana ETF comes at a crucial time for the cryptocurrency. Following the controversial launch of the LIBRA memecoin by Argentinian President Javier Milei, SOL experienced a significant drop of up to 42% year-to-date as of Feb. 18. The potential approval of a Solana ETF could provide a much-needed boost to the cryptocurrency.
According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the odds of approval for spot Solana ETFs currently stand at 70%. These odds could potentially increase if the ongoing lawsuits that classify SOL as a security are resolved. The SEC’s recent stance of pausing lawsuits against crypto firms suggests a positive outlook for Solana’s ETF approval.
Seyffart and Balchunas previously predicted a wave of crypto ETF approvals, including Solana, Hedera (HBAR), Litecoin (LTC), and XRP, as a result of the changing regulatory landscape in the US following President Donald Trump’s re-election. The addition of more assets seeking approval for ETFs, such as the Canary Capital Axelar (AXL) trust, further reinforces this prediction.
Canary Capital recently announced the launch of an Axelar (AXL) trust, aimed at providing institutional and accredited investors with exposure to AXL, the native cryptocurrency of the Axelar Network. This initiative highlights the growing demand for seamless cross-chain connectivity in the Web3 ecosystem. With Coinbase selected as the trust’s custodian, institutional investors can access secure exposure to Axelar’s interoperability solutions.
Steven McClurg, CEO of Canary Capital, emphasized the significance of Axelar in the Web3 landscape, stating, “As demand for crypto exposure grows, we remain committed to providing structured, secure, and forward-thinking investment vehicles that align with blockchain’s future.” With Axelar’s TVL surpassing $1 billion and plans to integrate with prominent networks like XRP Ledger, Hedera, and Solana, the future looks promising for blockchain interoperability.
As the blockchain industry continues to evolve, the introduction of ETFs for cryptocurrencies like Solana and innovative projects like Axelar signal a shift towards mainstream adoption. The upcoming decisions by the SEC regarding these ETF filings could have a significant impact on the future of digital asset investment opportunities.