- VanEck analysts predict a surge in Solana ETF applications.
- Trump’s victory brings regulatory changes.
- The SEC has been skeptical about altcoin ETFs.
The cryptocurrency industry expects significant regulatory changes in the United States after the 2024 presidential election. President Donald Trump has run a cryptocurrency-friendly platform, promising to make the U.S. a center of innovation for the industry.
As a result, traders are hoping for changes from the Securities and Exchange Commission. Thanks to these anticipated changes, analysts at VanEck suggest that altcoin ETFs have a much higher chance of success. This is especially true for the Solana ETF.
Trump’s victory sets the stage for new cryptocurrency ETFs
The Solana ETF is closer to becoming a reality. On Friday, November 15, Matt Sigel, head of digital asset research at VanEck, weighed in on the chances of success. According to Sigel, the new administration is likely to break the SEC’s regulatory deadlock.
“The Trump administration will be more friendly to encouraging innovation and capital formation in digital assets,” Sigel explained. He also delivered harsh criticism of the SEC’s current leadership. In particular, he compared the SEC to a “dead parent company” that is not meeting its obligations.
“The SEC is being sued just like parents who fail to pay child support are being sued in court,” Sigel said. These comments in Grayscale’s case against the SEC led the SEC to approve the Ethereum ETF.
SEC will see changes with new administration
So far, the agency has been blocking altcoin ETFs led by its current chairman, Gary Gensler. Despite approving an Ethereum ETF earlier this year, the agency believes other assets may also qualify. Moreover, the agency chose “regulation through enforcement” and sued cryptocurrency companies for millions of dollars.
“The SEC broke with a long tradition of regulating through enforcement,” Sigel explained. This, he believes, is why change “can open up significant opportunities for innovation.” The upshot of this is that the Solana ETF will be approved by the end of 2025, the analyst believes.
VanEck was the first investment firm to apply for its own Solana ETF. At the time, they explained that regulatory approval would depend on a change in leadership at the SEC.
On the flipside
- Analysts believe the SEC will not allow the Solana ETF because there is no regulated futures market for the asset.
- In most other countries, including the European Union wide range Cryptocurrency ETF product.
Why This Matters
Changes in the regulatory environment will have a significant impact on institutional cryptocurrency investments. Approval of the Solana ETF will attract institutional investors to the asset, boosting its value.
Learn more about Solana ETF:
Why the Solana ETF may be closer than you think
Learn more about the Solana ecosystem:
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