Analyst Predicts Solana ETF Approval If Donald Trump Wins Presidency

As the 2024 U.S. presidential election approaches, the outlook for exchange-traded funds (ETFs) may stagnate. Especially Solana, largely on the political outcome.

The Securities and Exchange Commission (SEC) recently showed some leniency in allowing fund managers to list ETFs on... Ethereum Immediacy. However, SEC Chairman Gary Gensler warned that the launch would take some time.

A Trump victory could increase the chances of approval of the Solana ETF

Speculation about the next potential cryptocurrency ETF has already begun, with Solana emerging as a major contender. She declared Cathie Wood, CEO and CIO of ARK Invest, said large financial institutions will likely focus on major cryptocurrencies when pushing for new ETFs, pointing to Solana as the next potential target.

Interestingly, Franklin Templeton, who manages approximately $1.64 trillion in assets, praised Solana's significant growth and even hinted at launching an altcoin fund.

“At Solana, we see Anatoly’s vision of a single atomic state machine as a powerful use case for decentralized blockchains. We are impressed by all the activity seen on Solana in Q4 2023: DePIN, DeFi, Meme Coins, NFTs. Fire dancer, "He said Franklin Templeton.

At the same time I was informed Coin Shares reported a significant increase in altcoin holdings among hedge funds and wealth managers, with specific reference to Solana. Ophelia Snyder, co-founder and president of 21.co, echoes this growing interest. Where reported Approximately $990 million in assets under management for Solana's exchange-traded product (ETP) on European exchanges.

Learn more: How to buy Solana with a bank card?

Given Donald Trump's stance as a pro-crypto candidate, Bloomberg ETF analyst Eric Balchunas speculated that his victory could lead to a more favorable environment for alternative ETFs. Trump will likely appoint a new SEC commissioner with a more lenient approach toward cryptocurrencies.

In fact, Trump's victory in the 2024 US presidential election could prompt ETF issuers to flood the SEC with new applications. And test the waters with several alternative ETFs, such as Solana, Wood mentioned.

“If Trump wins, we could see other coins like ETFs, in my opinion.” He said Balchunas.

Despite this enthusiasm, US regulatory approval remains strict. The SEC's recent acceptance of Ethereum ETFs has been a difficult process. Balchunas noted that the SEC's approval timeline could delay the introduction of another alternative ETF by several years.

Read more: Solana (SOL) Price Forecast for 2024, 2025, 2026, 2027

He also noted that maintaining a democratic administration could maintain the current restrictive approach. Which reduces the possibility of new approvals for the altcoin ETF. For this reason, the approval process thus far remains cautious and conservative.