In a recent strategy session, InvestAnswers reviewed VanEck’s filing for a Solana (SOL) ETF. This development is notable for Solana because it highlights the company’s potential market impact. Following the disclosure on Thursday, the Solana token rose 8% to about $147.95. It is up 10.5% weekly. It is up to 42% this year.
Solana’s increased by 740%
Solana has outperformed other major cryptocurrencies like Bitcoin (99%) and Ethereum (80%), with a 740% price increase in the past year.
Why has VanEck backed Solana?
If it is authorized, VanEck’s Solana ETF will initially be listed on the Cboe BZX exchange in the United States. Because it serves as a means of payment for transaction fees and computing services on the Solana blockchain, VanEck views Solana as a commodity, according to InvestAnswer. Payments, DeFi, gaming, and social media are the fundamental applications on which Solana’s design is centered.
When is the Sol ETF expected to launch?
Notably, according to James Seyffart, senior analyst at Bloomberg ETF, the Solana ETF could launch by 2025. This will be contingent on changes in the White House and the SEC. The current government is currently making it difficult for new ETFs to gain approval.
Cryptocurrency Price Impact of the SOL ETF
According to the analyst, incoming investments into the Solana ETF could lead to an increase in price multiples, predicting targets of $799, $1,123, and $1,772, representing ROIs ranging from 432% to 1,181%. VanEck’s optimistic forecast for Solana is $3,211 per token by 2030, which is in line with the expected ETF gains.
Solana Projects on Roll
Currently, the Solana ecosystem is attracting attention. Helium and HiveMapper are growing rapidly, with HiveMapper mapping a fifth of the world’s highways. Jupiter’s Giant Unified Market (GUM) platform handles tokenized assets on Solana, such as stablecoins, real estate, commodities, yield markets, meme coins, and shares. Blinkx is user-friendly, as it allows transactions via URLs. Solflare, Code, Breeze, Sling, Tiplink, Autocash, Jupiter, Cube, Drift, Zeta, Squads, Forecaster, and collaborations with UFC and Block Asset are some of the more notable initiatives.
What next?
The focus has now turned to Ethereum ETFs, which are expected to launch this year, as traditional investors are becoming more and more interested in these ETFs. VanEck’s recent registration for a Solana ETF could show that Solana could also follow a similar path, opening the door for more ETF offerings in the market.
