• In the wake of 21Shares and VanEck’s filings, several analysts have published their projections for a possible Solana ETF.
• Prominent industry figures argue that the approval of the Solana ETF depends critically on a White House transition.
• In the last day, Solana’s price has dropped by almost 5%.

As prominent industry figures expressed their opinions about the likelihood that the Securities & Exchange Commission (SEC) would approve a Solana ETF, Solana (SOL) saw a 5% decline in its value on Friday. This comes after the S-1 registration statements for the corresponding spot SOL ETFs were filed by asset managers VanEck and 21Shares.

Experts in cryptocurrency discuss the possibility of Solana ETF acceptance

Following VanEck and 21Shares’ recent application for a spot Solana ETF, Solana was the main topic of debate in several cryptocurrency circles on Friday. As seen in the chart below, Solana’s social volume has increased in response to the increasing attention it has received.

The social volume rise appears to be driven by discussions and forecasts regarding the likelihood of SOL ETF acceptance by prominent industry influencers.

Considering that the high volumes observed in Bitcoin ETFs over the previous six months have made crypto ETFs a hot topic for investment businesses, launching a Solana ETF might cement the token’s expanding market prominence.

According to Bloomberg analyst Eric Balchunas, the approval of SOL ETFs this year may be contingent upon a shift in the White House and the present SEC administration following the November presidential election.

“It’s safe to say that the prospects of both a change in POTUS and the approval of a Solana ETF over the next 12 months are stronger now than they were yesterday. Even yet, we haven’t yet provided an accurate figure for this. Far too soon,” he said.

Balchunas’s prediction was supported by Scott Johnsson, General Partner at Van Buren Capital, who surmised that the SOL ETF move might have an impact on the upcoming elections, predicting a “60+% chance of a new admin and/or the current admin getting scared straight through this election that they loosen things considerably.”

Balchunas stated that the absence of Solana futures in the US would probably be the main obstacle to the adoption of a Solana ETF.

VanEck’s and, by extension, 21Shares’ action may be “reckless,” according to Adam Cochran, partner at crypto venture capital firm Cinneamhain Ventures because SOL’s futures volume in foreign exchanges does not comply with SEC regulations. According to other analysts, the acceptance of Ethereum and Bitcoin exchange-traded funds (ETFs) follows a sequence that starts with the approval of an ETF for crypto futures and ends with the approval of the corresponding spot ETF.

Furthermore, SOL was formerly categorized as a security by the SEC in at least two different legal actions. This could reduce the likelihood of its ETF approval.

SOL has dropped over 5% in the last day as FOMO following VanEck’s initial filings yesterday appears to have subsided. An earlier assessment based on Santiment data suggested that the social volume spike that coincided with Solana’s ascent on Thursday would lead to a correction.