SOL ETF to Drive Price 8.9x?

The first US spot Solana [SOL] ETF application on 27th June by asset manager VanEck boosted crowd optimism on the SOL token. It rallied 9.4% during the intraday trading session on the same day.

On 27th June, asset manager VanEck submitted the first US spot Solana [SOL] ETF application, boosting crowd optimism on the SOL token. It went on to rally 9.4% during the intraday trading session on the same day.

However, unlike Bitcoin [BTC] and Ethereum [ETH], SOL doesn’t have a product based on future ETFs, which could affect the SEC’s approval.

But Bloomberg senior ETF analyst Eric Balchunas noted that things could change with a new administration.

‘If change at POTUS, I think anything possible…I see this filing as a call option on the POTUS election. Because the election happens but the 240 days the SEC has to ponder.’

According to Balchunas, if a new administration takes over, it could quickly approve the SOL ETF. However, if the current administration continues, the approval might take longer.

In either case, Balchunas’ filing of the application is being seen as a positive development for the SOL token.

Moreover, several market participants are optimistic that the SEC will approve a spot-solana ETF.

In a recent note, Balchunas highlighted the possibility of a massive price surge for SOL if an ETF is approved.

‘And with the others having or on the cusp of a spot ETF, not only is it likely just a matter of time before Solana gets one too, but also the impact on SOL just might be the largest yet…GSR is long SOL.’

According to GSR, an ETF for SOL could attract 2%- 14% of BTC ETF flows.

Hence, if the SOL ETF attracts 14% of BTC flows, SOL’s price could rally 8.9X in a bullish case scenario (Blue Sky).

Meanwhile, the Thursday upswing saw SOL hit $150. However, it also reached the 50-day EMA (Exponential Moving Average), which could be a key resistance level if the crowd optimism wanes.

As of press time, SOL had erased part of Thursday’s gains and traded at $145.

Previously, blockchain intelligence data platform Santiment noted that SOL’s correction was likely after the SOL ETF news.

‘SOL’s rally is being accompanied by traders FOMO’ing in, meaning the rally is less likely to continue.’

However, the crowd optimism remained evident, and further developments on the ETF front could continue to influence SOL’s price action.