Solana (SOL) might be preparing for its own ETF debut. Analysts say it’s all but certain that the Securities and Exchange Commission (SEC) will approve it. While this may sound like a new development, several other issuers have previously filed for spot Solana ETFs. They are now only behind the race against altcoins like XRP, Litecoin, and Dogecoin, all of which are vying for a first to market ETF. The expected approval of a Solana ETF would further expand access to cryptocurrency investments. This expansion would provide a boon to retail and institutional investors in equal measure.

The present wave of bullish sentiment towards Solana ETFs optimism is largely due to the successful launch and subsequent price performance of Bitcoin and Ethereum ETFs. We’ve seen Ethereum ETFs already amassed large net asset values and big inflows. The market is left on the edge of their seat waiting to see what altcoin will be next. While the SEC considers these filings, excitement within the cryptocurrency community is reaching a fever pitch.

Solana ETF Approval: A High Probability

Odds that a Solana ETF gets approval from the SEC now sits at 90%. There are a number of reasons that contribute to this alarming high likelihood. The increasing popularity of crypto investment vehicles and the SEC’s shifting approach to digital assets are formative factors. Seven different issuers have risen to the occasion and filed for spot Solana ETFs. This strategic shift indicates tremendous industry enthusiasm and faith in Solana’s potential as an investment.

Solana, the world’s 6th-largest cryptocurrency by market capitalization ($76 billion), is at $144.40. The asset is still 50.6% down from its peak at $293.3. Though there’s lots of interest in it right now, the promise of having an ETF could help revitalize interest and potential investment in it.

The SEC is currently encouraging would-be Solana ETF issuers to file their updated S-forms. They must accomplish this by no later than next week, indicating that the review process has started. This request is a strong signal that the SEC is actively working on these applications and getting closer to a final decision.

"I would just be absolutely and utterly stunned if the SEC does something to not allow a spot XRP or spot Solana ETF to launch." - Seyffart

Altcoins Gear Up for ETF Approval

Solana isn’t the only altcoin with eyes on an ETF. Litecoin (LTC), XRP, and Dogecoin (DOGE) are in the running too. Each of these cryptocurrencies has a vastly different chance of success.

Litecoin, launched in 2011 by Charlie Lee, was meant to be a faster, cheaper version of Bitcoin. Those odds, according to experts, are as high as 77% to 90% that its ETF will be approved by the end of 2025. Having an ATH of $410, Litecoin makes for a great entry point now that it’s far below that level, trading at just $83.9 at the moment.

XRP has a good shot too, with analysts calculating a 90% chance of ETF approval this year. XRP has a strong market cap of $125.7 billion and is trading at $2.14 at press time. That good news – combined with Ripple’s recent $50 million settlement with the SEC – has further propelled XRP’s prospects.

"SWIFT today has two components: messaging and liquidity. Liquidity is owned by banks. I think less about the messaging and more about liquidity. If you’re driving all the liquidity, it’s good for XRP." - Brad Garlinghouse

Dogecoin, the reigning meme coin darling, joins the fray, with a calculated 80% probability of ETF approval. Additional detail on Dogecoin ETF filings continues to come to light. The high likelihood signals that cryptocurrencies are rapidly moving towards mainstream acceptance as investment vehicles.

Impact of Ethereum ETF Success

The approval of Ethereum ETFs has opened the floodgates for other altcoins to do so. Ethereum ETFs are pumping $3.86 billion in net inflows and a total net asset value of $10.7 billion. This robust performance indicates that the demand clearly exists for cryptocurrency investment products. It similarly provides a roadmap for Solana and other altcoins’ own ETF approvals.

"ETFs that track broad crypto indexes may be approved by the SEC within the next month. The agency also may act early on spot Solana and staking ETF filings in response to Rex-Osprey's attempt (to) use regulatory and legal workarounds to launch Solana and Ether staking products. Seven issuers have filed for spot Solana ETFs." - Eric Balchunas and James Seyffart

The approval and resulting success of Ethereum ETFs confirmed the viability and robust investor demand for cryptocurrency investment products. This has almost certainly served to set the tone for the SEC’s subsequent review of all other altcoin ETF applications. The new regulatory pathway for crypto ETFs now clears the way for a more orderly product launch. This deep market infrastructure creates fertile ground for new, potential offerings to bloom.

The enthusiastic reception of Ethereum ETFs has lit a fire under additional issuers. Consequently, they are now pursuing altcoin ETFs, increasing the competition and innovation within the cryptocurrency investment landscape. That trend will only continue to accelerate as the market matures. Increasingly, these investors are looking for ways to get exposure to the digital assets ecosystem through regulated investment vehicles.