The crypto market is buzzing with anticipation as spot Ethereum (ETH) ETFs edge closer to regulatory approval. With the U.S. Securities and Exchange Commission (SEC) expected to make a decision imminently, investors are already shifting focus to the next potential breakthrough: a Solana (SOL) ETF.
Recent analysis suggests that demand for a SOL-based exchange-traded fund could be substantial — possibly outpacing interest in other digital assets beyond Bitcoin (BTC) and Ethereum. As the crypto ecosystem evolves, Solana is emerging as a top contender for the next wave of institutional-grade financial products.
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Why Solana Is Gaining ETF Momentum
On Thursday, Bloomberg ETF analyst Eric Balchunas highlighted that among all altcoins, Solana may have the strongest case for ETF demand following BTC and ETH. His assessment comes amid growing speculation about which digital asset will be next in line for regulatory greenlight.
However, Balchunas also noted a critical hurdle: the SEC’s stance on Solana differs significantly from its treatment of Ethereum. In previous legal actions against Coinbase, Kraken, and other industry players, the SEC has explicitly labeled Solana (SOL) as a security — a classification that could complicate or delay any ETF application.
This regulatory ambiguity stands in contrast to Ethereum’s increasingly recognized status as a commodity, a shift that has paved the way for spot ETH ETF filings. For Solana to follow suit, it may require not only market maturity but also legislative clarity.
FIT 21: A Potential Game-Changer for Crypto Regulation
The conversation around SOL ETFs gained momentum after the U.S. House of Representatives passed the FIT 21 Act — short for the Financial Innovation and Technology for the 21st Century Act. This landmark legislation aims to establish clear regulatory boundaries for digital assets, distinguishing between securities and commodities.
Backed by major tech and crypto advocates, FIT 21 could provide the legal framework needed to resolve long-standing debates over asset classification. Prominent venture firm a16z has analyzed the bill’s implications, stating it could bring much-needed clarity to whether tokens like SOL qualify as securities or fall under commodity jurisdiction.
Coinbase CEO Brian Armstrong hailed the vote as historic:
“This is a pivotal moment. If signed into law, FIT 21 will finally create clear rules for crypto regulation. Americans want confidence that their rights to use digital assets are protected — and that regulators aren’t weaponizing uncertainty to stifle innovation.”
With bipartisan support, FIT 21 now moves to the Senate, where its fate will influence the trajectory of future crypto ETFs — including those tied to Solana.
Strategic Outlook: Is SOL the Next Big ETF Play?
Daniel Yan, co-founder of Matrixport, believes investors are facing a strategic opportunity in the evolving ETF landscape. Drawing parallels to Bitcoin’s price action after its spot ETF approval — which saw BTC dip nearly 15% post-launch — Yan argues that early positioning in next-in-line assets could yield superior returns.
“The better trade might be going long on SOL or ETH,” Yan stated. “It sounds counterintuitive, maybe even unpopular. But if ETH ETFs get approved, Solana will likely be next.”
Yan’s thesis rests on two pillars:
- Higher upside potential — Compared to more mature assets like BTC and ETH, SOL offers greater growth room due to its expanding ecosystem and lower market cap.
- Investor rotation — Once ETH ETFs launch successfully, capital may begin flowing into high-potential altcoins with strong fundamentals and institutional interest.
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Market Snapshot: ETH and SOL Performance
As of this writing:
- Ethereum (ETH) is trading around $3,760, down 0.74% over 24 hours but up nearly 25% over the past week.
- Solana (SOL) hovers near $178, gaining 0.42% in one day and 8.80% over seven days.
These figures reflect strong underlying demand despite short-term volatility. Ethereum’s price resilience underscores market confidence ahead of the SEC’s expected decision — potentially as early as Friday at 4:00 PM ET (Saturday 4:00 AM Taipei time), according to Balchunas.
Meanwhile, Solana’s steady climb signals growing investor interest, even without formal ETF approval prospects on the immediate horizon.
What’s Holding Back a SOL ETF?
Despite strong technical performance and ecosystem growth, several barriers remain:
- Regulatory classification: The SEC’s repeated assertion that SOL is a security creates legal risk for issuers.
- Centralization concerns: Unlike Bitcoin or Ethereum, Solana’s network architecture faces scrutiny over node distribution and control.
- Market maturity: While rapidly growing, Solana’s ecosystem is still younger than Ethereum’s, potentially raising questions about liquidity and stability.
Nonetheless, if FIT 21 passes and redefines how digital assets are regulated, these obstacles could diminish — opening doors for asset managers to file formal SOL ETF proposals.
FAQ: Your Questions About SOL ETFs, Answered
Q: Why is Solana being considered for an ETF?
A: Solana has emerged as a leading smart contract platform with strong transaction volume, developer activity, and institutional interest — key criteria for ETF eligibility.
Q: Has anyone filed for a SOL ETF yet?
A: As of now, there are no public filings for a spot Solana ETF with the SEC. However, market speculation suggests applications could follow ETH ETF approval.
Q: Is Solana a security or a commodity?
A: The SEC has claimed SOL is a security in litigation contexts. However, many in the industry argue it functions more like a commodity due to its decentralized network and utility.
Q: How would a SOL ETF impact its price?
A: Similar to BTC and ETH ETFs, a SOL ETF could bring institutional inflows, increase liquidity, and reduce volatility — potentially driving long-term price appreciation.
Q: What role does FIT 21 play in this process?
A: FIT 21 could legally define which digital assets are commodities versus securities — potentially allowing SOL to qualify as a commodity and become eligible for ETF listing.
Q: When might a SOL ETF launch?
A: If ETH ETFs are approved in 2025 and regulatory clarity improves, the earliest possible launch window for a SOL ETF could be late 2025 or 2026.
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Final Thoughts: The Road Ahead for Crypto ETFs
The potential approval of spot Ethereum ETFs marks a turning point for digital assets — but it’s likely just the beginning. With Solana gaining traction as a scalable, high-performance blockchain, it stands at the forefront of the next phase of crypto adoption.
While regulatory challenges remain significant, legislative progress like FIT 21 offers hope for clearer rules and fairer treatment across the industry. For forward-thinking investors, monitoring developments around SOL — both technologically and legally — could reveal early signals of the next major market shift.
As history shows, being positioned ahead of structural changes often yields the greatest rewards.
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