Solana Rallies on Potential ETF Approval, Nears All-Time High

Solana (SOL) is experiencing a surge, rising 10% on the day and approaching its all-time high. This rally coincides with reports of the SEC engaging with issuers interested in launching a Solana spot ETF.

Institutional Interest in Solana ETFs

According to Fox Business reporter Eleanor Terrett, the SEC is actively discussing Solana spot ETFs with potential issuers. Companies like VanEck, 21Shares, and Canary Funds have already filed S-1 applications, while Bitwise recently announced its intention to do so.

Exchanges like Cboe Global Markets are expected to submit 19b4 filings on behalf of these issuers soon. This is a crucial step in seeking SEC approval to list these ETFs.

Optimism for Approval

While the SEC has 240 days to approve or deny these products, industry optimism is growing. This optimism stems from increased SEC engagement and the potential for a more pro-crypto regulatory stance under the incoming administration.

A decision on a Solana ETF could come as early as 2025 and be made by the successor of current SEC Chair Gary Gensler.

Trader Sentiment and Price Action

Crypto trader Cold Blooded Shiller highlights Solana's 35% climb since his initial recommendation. He remains optimistic about a $500 price target, fueled by the recent rally.

Veteran trader Jacob Canfield praises Solana's resilience, noting its proximity to its all-time highs. Despite being declared "dead" numerous times, Solana has surged from $8 to its current levels.

DefiLlama data further emphasizes Solana's momentum. Its total value locked (TVL) reached $8.6 billion, the highest since November 2021. Revenue is also at an all-time high of $5.9 million.

At the time of writing, Solana is trading around $256, with a market capitalization exceeding $120 billion.