Prepare for the Altcoin ETF Summer: Analyst Predicts Solana Takeoff

In July, the SEC may approve spot ETFs based on a basket of cryptocurrencies, followed by decisions regarding funds based on Solana. This prediction was made by Eric Balchunas, a senior exchange analyst at Bloomberg.

«Prepare for a potential summer of altcoin ETFs, with Solana likely leading the way,» he stated.

According to information from Blockworks, sourced from its own networks, the Commission has requested updated S-1 forms from potential issuers of spot SOL exchange-traded funds.

Sources from the publication indicated that the regulator has committed to commenting on the applications within 30 days. One insider suggested that following the form updates, the SEC might approve these products within the next three to five weeks.

Bloomberg exchange analyst James Seyffart confirmed that while this possibility exists, he does not anticipate a decision from the agency before early October.

In their note, Balchunas and Seyffart pointed out that the regulator may expedite the review of Solana-ETF applications and funds with staking features due to Rex Financial’s attempts to launch similar products in the U.S. through alternative methods.

Analysts believe that once spot SOL-ETFs are registered, there will be a «tsunami» of similar products based on other altcoins. They estimate that the chances of obtaining approval for Solana and Litecoin-based asset baskets by the end of the year stand at 90%, while for XRP funds, it is 85%.

Balchunas emphasized that he does not expect demand for these products to match the interest in bitcoin ETFs.

«It would be a huge success for Solana to attract a billion, the same goes for XRP,» he remarked in a comment to The Block.

It’s worth noting that the assets of BlackRock’s IBIT, the largest exchange-traded fund, exceeded $70 billion within 341 trading days, making it the fastest result among all ETFs.