Solana’s ETF filings could hinge on how the U.S. presidential race plays out, Bloomberg analyst Eric Balchunas said Monday. The political battle between Joe Biden and Donald Trump may decide whether Solana’s ETF applications are successful or fail as the cryptocurrency community watches closely.
Election Effect on Solana ETFs.
Bloomberg financial analyst, Eric Balchunas, suggested the U.S. presidential election could be a factor in approving Solana’s ETF filings. He remarked, “Looks like Solana ETFs are going to have a final deadline of mid-March 2025. But between now and then is November, the most important date. These are likely DOA if Biden wins. But if Trump wins, anything is possible.”
This has important implications for crypto, as Biden’s re-election could spell doom for Solana’s ETFs, while a Trump victory might usher in more favorable crypto regulations.
Filing Details & Resistance to Manipulation.
On June 10, 2024, VanEck and 21 Shares filed two Form 19b-4 applications with the Chicago Board Options Exchange (CBOE). These filings claim Solana (SOL) is resistant to price manipulation like Bitcoin and Ethereum.
The CBOE’s letter to the SEC acknowledges attempts to manipulate Solana’s price through wash trading. But it claims those manipulations do not affect prices on major exchanges because “participants will generally ignore markets with quotes they deem non-executable.”
Approval Odds & Market Sentiment.
Despite the robust arguments set forth in the filings, the overall belief that Solana’s ETF will be approved by the end of 2024 remains low. The latest polls from PolyMarket put approval only at a 10% chance this year. But this should not rule out 2025 altogether.
The SEC guidelines allow 240 days for a decision after revised filings are submitted, giving the crypto community hope that the Solana ETF will someday come to fruition.
Implications for Cryptocurrency Regulation Broader Implications.
The eventual approval or rejection of Solana’s ETF has broader implications for the cryptocurrency market. A Biden victory that maintains the current regulatory environment could mean tighter controls and fewer new crypto financial products. On the other hand, a Trump win could signify a more loose regulation which promotes growth and innovation in the cryptocurrency market.
What’s Next for Solana and the Crypto Market?
The crypto market is on edge as the political landscape in the U.S. shapes Solana’s ETF filings. The final decision deadline for Solana’s ETFs is expected in mid-March 2025. Until then, the battle between politics and cryptocurrency regulation will determine the direction of Solana and the entire digital asset ecosystem.
The crypto community will be watching The presidential race closely because The outcome could set a precedent for how digital assets are treated in The U.S. Solana’s ETF filings underscore The interplay of interests in politics, regulation and financial innovation.
Stay Informed
Watching the latest developments from the SEC is important as the election approaches and the SEC reviews the ETF filings. The outcome will affect Solana and offer hints about the future regulatory landscape for cryptocurrencies in the U.S.
