With the token making bouncing back over the last day, Solana (SOL) has seen its fund inflows surge nearly 2,000% as ETF rumblings arise. Indeed, the asset has seen its fund inflow figure increase by 1,966%, according to a recent CoinShares report.
Specifically, $5.9 million has been allocated to Solana-related offerings over the last week. That phenomenal increase has started to create some buzz around whether or not an exchange-traded fund will be in SOL’s future. Could Solana be the latest asset to receive consideration for the investment vehicle?
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Solana Inflows Reach $5.9 Million in a Week as ETF Rumblings Start
Since the start of 2024, the idea of cryptocurrency-based ETFs has become increasingly popular. Specifically, the US Securities and Exchange Commission (SEC) approved the country’s first Spot Bitcoin ETF early in the year. Just a few months later, Hong Kong approved similar options for both BTC and Ethereum.
Now, all eyes are on how the US could continue the ETF trend. However, with so many questions regarding the SEC’s acceptance of the market, those talks have been hushed recently. Still, there is no shortage of assets that could justify an investment offering.
Moreover, one has recently added to its own case. Indeed, Solana (SOL) has seen its fund inflow surge almost 2,000% as it sets off some of its own ETF buzz. The cryptocurrency joins Ethereum (ETH) and Ripple (XRP) as tokens that the market has inquired about for potential ETF offerings.
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Over the last 24 hours, SOL has increased by more than 1.2%, according to CoinMarketCap. That figure over the last 30 days denotes a 5% increase, showcasing the positive trajectory that the token now finds itself on. However, that differs from the $5.9 million fund inflow that Solana enjoyed last week.
That performance showcases an increase of almost 20 times since the start of the year. Specifically, that increase is a total of $17 million. Moreover, it is all the more impressive when considering that the overall volume of digital asset exchange-traded products has declined from $17 billion in April to $8 billion in May.
Is a SOL ETF Possible?
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Now, all eyes will be on the possibility of a Spot Solana ETF. Although the product may perform well considering the positive sentiment for SOL’s growth prospects, there is a long road ahead for a possible ETF birth for the asset.
Although Bitcoin saw its Spot ETF option approved, that was after a long string of rejections. Additionally, any ETF will have to contend with the decision the agency makes regarding Ethereum. That token was viewed by many as the next line for a Spot ETF offering in the United States.
The SEC has been hard at work to potentially devalue ETH by altering its security status. The agency had imposed a legal campaign to classify the asset as an unregistered security. If that took place, it would greatly hinder the asset’s chances for a Spot ETF.
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Alternatively, SEC Chair Gary Gensler has not been shy about his disdain for digital assets. Moreover, he has labeled everything outside of Bitcoin with the same unregistered security distinction. Therefore, any prospect while that baseline is still in place is greatly threatened.
However, there remains great hope in the trajectory of Solana as an asset. The network has seen a great surge this year, rivaling Ethereum and living up to the name it had long been given. Moreover, SOL has increased by more than 600% this year, showcasing even more potential for asset prominence to drive its dialogue in regulatory discourse.