Trump Win May Favor Solana ETFs; Biden Victory Could Hinder

Solana spot ETF approval may hang on 2024 the U.S. presidential election results, says ETF analyst Eric Balchunas in a July 9th post. The election will determine the regulatory environment for the Solana ETF.

Balchunas suggested that victory for Joe Biden could hinder the approval of Solana ETFs. In contrast, a Donald Trump win might create a more favorable regulatory environment. This sentiment is echoed by a June 27 report from crypto market maker GSR Markets. The report predicts that the approval and launch of US spot Solana ETFs could potentially increase SOL price by ninefold.

The United States Securities and Exchange Commission (SEC) is set to decide on Solana ETFs by mid-March 2025. This follows the Chicago Board Options Exchange filing two Form 19b-4 applications on July 8. The applications list ETFs proposed by VanEck and 21Shares. The CBOE's filing compares prospective Solana funds to approved Bitcoin and Ether ETFs. It highlights Solana's decentralization. It also notes throughput and speed as key strengths that make it resistant to market manipulation.

The SEC has 240 days from the filing date to decide on Solana ETFs. This would allow for the necessary rule change to list these products. ETF analyst Nate Geraci noted that the decision clock will start ticking once the SEC acknowledges the filings.

“Our country must be the leader in the field[Cryptocurrency], there is no second place.” - Donald Trump

The upcoming 2024 US election is pivotal for the future of cryptocurrency regulation in the country. A recent Digital Currency Group poll underscores the importance of cryptocurrency as a significant issue for US voters. The contrasting views of the leading candidates drive this. The Biden administration has adopted a stringent regulatory stance. The Trump campaign signals a more supportive approach. This could position the US as a global leader in cryptocurrency.

A 2023 Greyscale survey shows that US voters prefer presidential candidates with a pro-crypto governance perspective. A 2023 Coinbase study reports that approximately 20% of American adults are cryptocurrency holders. This indicates that a pro-cryptocurrency stance could benefit candidates in the upcoming election.

The future of Solana ETFs hinges on the 2024 US presidential election. Regulatory outcomes are likely influenced by the winning candidate's stance on cryptocurrency.