The Ethereum ETF was approved in May 2024. Three days before the ETF approval, Ethereum’s 24-hour price suddenly soared from $2900 to $3700. After the ETF was officially approved, the price did not continue to rise but stayed in the $3700 to $3800 range. This is very similar to the situation with the Bitcoin ETF, so the ETF is not the main reason for the price increase.

However, the ETF news is still very important because whether an ETF for a certain token is approved by the SEC indicates the market’s attention to that token. After the SEC approved the Bitcoin ETF and Ethereum ETF, the next one to be approved is likely to be the Solana ETF.

How likely is the approval of the Solana ETF?

Bitcoin and Ethereum have shown significant narrative differences. Bitcoin represents blockchain payments, while Ethereum represents blockchain technology. This is the main reason why the Bitcoin ecosystem is not favored in 2024. Regardless of whether Bitcoin has a mature Layer 2, most users’ consensus is that Bitcoin is digital gold and will not be used as a technology.

As the representative of blockchain technology, Ethereum would have shown a downward price trend in 2024 if it weren’t for the ETF approval. The ETF approval allows Ethereum to raise funds in the securities market like a stock. Compared to Ethereum, Solana is widely used in traditional enterprises. If the Ethereum ETF can be approved by the SEC, then the approval of the Solana ETF is also likely to happen soon.

JP Morgan has a different view on the Solana ETF, believing it is unlikely to be approved. The approval of Ethereum was due to political reasons.

Regardless of the reason behind the approval of a Crypto ETF, the driving force behind ETFs is people. As long as there is enough capital behind a crypto asset affecting many people’s interests, the ETF will be approved. Other reasons are just used to speculate the price.

What will the price of Solana be after the ETF approval?

Whenever the Solana ETF is approved, the final result will be the same as with the Bitcoin ETF and Ethereum ETF: the price will drop after the approval. The price will surge before the approval.

Therefore, the price of Solana may show a significant retracement after the ETF is approved. Before the approval, the price will rise due to the positive news.

When can we know if the Solana ETF will be approved?

Before the approval of the Bitcoin ETF and Ethereum ETF, there was a very obvious signal: the sudden increase in the number of people discussing the topic.

So paying attention to the community’s interest in the Solana ETF can indicate when the Solana ETF will be approved.