Solana, an altcoin seeing rapid growth, is currently seeking clearance for an exchange-traded fund (ETF) in the United States. This comes after Brazil’s financial regulator approved the first Solana ETF, marking a significant achievement for crypto.
Solana, established in 2017 by Anatoly Yakovenko and overseen by the Solana Foundation, has expanded to become one of the leading cryptocurrencies, boasting a market capitalization of $70 billion.
The permission from Brazil has the potential to significantly boost Solana’s growth throughout Latin America, and its price has experienced a jump as a result of the anticipation that it might spearhead the upcoming wave of altcoin ETFs on a global scale.
The acceptance of Ethereum’s ETF has sparked a surge of interest in Solana’s U.S. ETF approval. VanEck, 21Shares, and Cboe Global Markets have demonstrated significant institutional backing for this.
Nevertheless, Solana has significant obstacles in obtaining SEC clearance, such as the absence of regulated trading platforms, apprehensions regarding market manipulation, network disruptions, and limited acknowledgment beyond the crypto community.
The regulatory system in the United States lacks clarity regarding the criteria for classifying an asset as decentralized, which presents challenges in persuading regulators about its stability and worth.
Considering the prevailing regulatory landscape under President Joe Biden’s administration, the likelihood of Solana obtaining clearance for an ETF is minimal.
Political developments may have an impact on the SEC’s decision, as former President Donald Trump could potentially offer political support to promote crypto legislation, including the approval of Solana’s ETF. The approval procedure for Bitcoin’s Exchange-Traded Fund (ETF) was protracted and arduous, entailing several years of litigation.
