How High Could Solana Price Go if Spot SOL ETF Is Approved?

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As a seasoned researcher who has witnessed the rollercoaster ride of the crypto market, I find myself intrigued by the anticipation surrounding the Spot SOL ETF approval. With my fingers crossed and eyes glued to the charts, I can’t help but feel an adrenaline rush similar to when Gary Gensler announced his resignation (well, almost).

As exchange-traded funds and Bitcoin/ETF investments continue to gain traction, investors are eagerly waiting for the SEC’s decision on a spot Solana ETF. Some recent indications suggest potential growth signals in early 2025, which might propel Solana prices to unprecedented highs. However, it remains to be seen just how much higher they could go. Let’s delve into that further.

How Much Can Solana Price Rise After Spot SOL ETF Approval?

Given Solana’s standing as one of the leading cryptocurrencies to invest in, many investors are hopeful for a surge in Solana’s value to around $300 in the near future. While the token has previously reached as high as $263.83, this short-term goal is set at $300. In the longer term, some experts predict it could reach $420 if a spot SOL ETF gets approved. Under extremely optimistic conditions, Solana’s price might even climb to an impressive $1000.

Eric Balchunas, an analyst at Bloomberg, has sparked excitement about a Solana ETF through a recent post. He suggested that fresh crypto exchange-traded funds, such as those for XRP and Solana, might receive approval as early as 2025. However, he also pointed out that the delay in this process is due to both assets being classified as Securities by the SEC. Yet, a new SEC administration could potentially expedite the approval process in early 2025.

This single comment is enough to keep the Solana holders’ hopes to continue their expectations on the Spot SOL ETF, especially when the ETH, which lacks on many levels compared to SOL, delivers such good results. Since its launch in July, the Ethereum ETF inflows have bagged $2.41 billion.

It’s true that both Ethereum and Solana have shown excellent performance across various aspects, but when it comes to transactions per second, transaction costs, and user adoption, Solana appears to outshine Ethereum. Given these factors, it seems logical for a Solana Exchange Traded Fund (ETF) to enter the market.

Spot Solana ETF Hopes Remain High

There’s a lot of excitement about the potential approval of the Solana ETF, as much as there has been following Gary Gensler’s resignation. While Gary has historically imposed restrictions on the crypto sector’s expansion, a new administration may bring more favorable regulations. Interestingly, five significant firms have already submitted applications for SOL ETFs, among them are Bitwise, VanEck, 21Shares, Canary Capital, and even Grayscale, which is planning to transform its Grayscale Solana Trust (GSOL) into a SOL ETF.

Currently, U.S. investors must be patient about the development of a Solana ETF, as it’s expected to continue next year. However, Bitwise is persistently progressing and recently announced the launch of a new Solana Staking ETP in Germany. This enables users to earn returns surpassing those offered by other Solana products. If the legal hurdles concerning Solana’s classification as a Security rather than a commodity by the SEC in the U.S. are resolved, similar opportunities might arise here. Notably, this development could spur the price of Solana, which still holds significant untapped potential but has momentarily stalled due to the recent downturn in the crypto market.

SOL Technical Analysis

At present, the value of Solana’s token is being affected by the ongoing downturn in the cryptocurrency market. This has led to a decrease of about 15% in the price of SOL over the last 24 hours, with its current value standing at approximately $178.11. Although its total market capitalization remains at $178.11 billion, there’s been an increase in trading volume by around 29%, reaching $9.19 billion. This surge is due to the focus of significant investors on utility-based tokens.

Despite the unexpected downturn leaving some disheartened, analysts are urging investors to maintain a long-term perspective when it comes to returns. As per XO’s analysis, Solana’s price has both support at $214.08 and resistance at $260.93. A bullish trend may emerge if the token manages to surpass this significant resistance level.

What To Anticipate Next?

Investors are eagerly awaiting the approval of the Solana ETF not just for its enhanced liquidity and stability, but also as a potential price booster for Solana. Some experts predict that if approved, the Solana price could rise anywhere from $300 to $1000. However, the process is currently on hold due to the SEC’s scrutiny of securities issues and may not be resolved until mid-2025. Nevertheless, Bloomberg analyst Eric Balchunas anticipates a significant development in this matter with the change in the new administration.

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2024-12-20 15:05