21Shares Seeks Approval for Solana ETF Following VanEck BlackRock Might be Next
The chances of a Solana summer are steadily increasing, as 21Shares becomes the second company to apply for a Solana ETF. VanEck and 21Shares are typically the first to apply for crypto ETFs, as seen with Ethereum. The question now is whether BlackRock and Fidelity will also enter the race.
21Shares has filed an S-1 for a Solana ETF, indicating a smart move according to Bloomberg analyst James Seyffart. This decision comes after the disastrous performance of President Joe Biden in the recent presidential debate, which has increased the likelihood of a Trump presidency. If this happens, there could be changes in the US Securities and Exchange Commission (SEC) leadership after November.
Approval for Solana ETFs is unlikely under the current SEC Chair Gary Gensler. Both VanEck and 21Shares treat Solana as a commodity in their S-1 applications, despite the Commission considering it a security in previous lawsuits. Additionally, the current administration requires crypto assets to have a regulated futures market before approving spot ETFs. While Bitcoin and Ethereum meet this requirement, Solana does not.
However, a new SEC led by pro-crypto Commissioner Hester Peirce could change the situation. Peirce has criticized the Commission’s use of Section 6(b) of the Securities Act to reject crypto ETFs and the surveillance-sharing agreements and Futures market requirements for spot ETF approvals. If Trump wins in November, there could be a considerable chance of approval for Solana ETFs.
If the spot ETF is approved, GSR believes that Solana could experience a significant price surge, potentially increasing by up to 9 times. Experts are also keeping an eye on Solana meme coins, as they often act as beta plays on SOL. Dogwifhat, for example, has a strong correlation with Solana and has delivered 4x gains in the same direction.
In addition to Dogwifhat, new meme coins like Base Dawgz are also attracting bullish sentiment. Some believe that Base Dawgz could offer gains of up to 100x. Base Dawgz, native to the Base chain, is expected to become one of the largest meme coins in the ecosystem, similar to Brett. As a multi-chain meme coin, DAWGZ can benefit from the strength of various cryptocurrencies, including Solana. Its innovative concepts, such as share-to-earn and staking rewards, have also captured the attention of investors.
Another meme coin to watch out for is Sealana, a seal-themed token set to launch on July 2nd. SEAL has already raised over $6 million in its presale and continues to be in high demand before its initial exchange offering (IEO). Experts believe that Sealana could also be the next 100x meme coin, following in the footsteps of Base Dawgz.
