Solana (SOL) Soars Past $170, Eyes $250 Milestone
The current trade price of Solana (SOL) is $173, marking a 24% increase over the past 7 days. This steady rise in SOL’s price demonstrates the growing confidence of crypto investors in the Solana blockchain network technology.
Just 10 days ago, the majority of crypto analysts already predicted that the $170 level would be critical for the Solana (SOL) market. They suggested that reaching this level would create another bullish factor for significant rallies.
On chain price analysts noted that, since July 4, 2024, Solana (SOL) has surged by 33%, a rise attributed to market scepticism around Solana linked to new developments in the ETF sector.
Recently, CBOE Global Markets applied for approval from the US Securities and Exchange Commission (SEC) to list Solana-linked ETFs.
ETF experts noted that if CBOE secures approval, regulators will have 240 days to make a decision. This news has significantly boosted Solana’s bullish momentum, with the coin’s price increasing by over 24% in the past week, outperforming other major cryptocurrencies.
Challenges for Solana spot ETF
There are several challenges for Solana spot ETF applications in the US which are surely a very big road bump for Solana spot ETF products.
Regulatory Scrutiny
The American securities regulatory body SEC has been cautious about approving cryptocurrency ETFs due to concerns over market manipulation, fraud, and the volatility of cryptocurrencies. Solana’s application will undergo rigorous examination to ensure it meets all regulatory standards.
Market Integrity
Ensuring the integrity of the market is crucial. The SEC will assess whether Solana’s Crypto market has sufficient safeguards against price manipulation and whether it operates transparently and efficiently.
Custody Solutions
The application must demonstrate robust custody solutions for holding and securing Solana tokens. This includes protecting against hacking, theft, and other cybersecurity threats.
Liquidity and Price Stability
The US SEC will evaluate the liquidity and stability of Solana’s market. Sufficient liquidity is necessary to support an ETF without causing significant price fluctuations.
Investor Protection
The SEC prioritises investor protection. The application must show that it can protect investors from risks inherent in the cryptocurrency market, including extreme volatility and potential loss of funds.
Compliance with Existing Laws
The ETF must comply with existing securities laws and regulations. The SEC will ensure that the proposed ETF adheres to the legal framework governing financial products and services.
Public Perception and Scepticism
There is often public scepticism about new cryptocurrency financial products. Overcoming this scepticism and gaining public trust can be a challenge.
Addressing these challenges effectively will be crucial for the approval of a Solana spot ETF in the jurisdiction of the USA.
Read also: Three Alarming Signs: Ethereum (ETH) Poised for Major Correction
