Solana News Today: Regulators Ponder: Will Altcoin ETFs Reshape Institutional Investing?

The U.S. Securities and Exchange Commission (SEC) is drawing closer to approving spot exchange-traded funds (ETFs) for Solana (SOL) and XRP, according to recent data and filings. With Bitcoin and Ethereum ETFs already launched, these altcoins are now positioned to attract substantial institutional capital. Predictive markets on Polymarket indicate an approval probability of 95% for both assets, with some sources estimating as high as 99% for Solana [1].

Multiple institutional players, including Grayscale, Franklin Templeton, Bitwise, and VanEck, have submitted applications for these ETFs, and recent regulatory updates suggest the SEC is engaged in active discussions with applicants. The coordinated S-1 filings are seen by analysts as an indication that the regulator is close to granting approval [1].

Solana’s appeal as an ETF candidate lies in its high transaction throughput—processing approximately 65,000 transactions per second—and its dominance in decentralized exchange volumes. However, the SEC’s ongoing inquiry into whether Solana constitutes an unregistered security remains a critical uncertainty [1]. XRP, by contrast, has a more favorable regulatory trajectory, with a court ruling affirming its public sales as non-registered securities. This legal clarity positions XRP as a strong contender for approval, particularly given its success in regulated futures trading on the CME [1].

The potential impact of these ETFs on the market is significant. Analysts predict that an initial influx of $5–$8 billion for XRP and a similar amount for Solana could drive price targets as high as $335 for the latter. These inflows would create more stable liquidity, reduce price volatility, and drive broader adoption of derivatives markets as Wall Street firms hedge ETF exposure [1]. However, historical patterns suggest a potential “buy the rumor, sell the news” dynamic, particularly for XRP, which has seen sharp price declines following major legal wins [1].

In parallel, Cardano (ADA) is also under regulatory scrutiny as Grayscale has submitted S-1 filings for an ADA ETF. The product, which would trade on NYSE Arca under the ticker GADA, aims to track the CoinDesk Cardano Price Index and is part of a broader strategy to expand Grayscale’s crypto ETF offerings. The approval odds for the Cardano ETF, according to Polymarket, stand at 87%, and recent market reactions suggest optimism among investors [5]. If approved, the ETF would grant retail and institutional investors regulated access to ADA through traditional brokerage platforms, potentially expanding Cardano’s market reach.

Technical indicators also point to a bullish outlook for key altcoins. Solana’s price has been consolidating around $206.8, with analysts identifying the $215–$220 range as a critical resistance level. A breakout above this threshold could trigger a rally toward $260, contingent on successful implementation of the Alpenglow network upgrade [2]. For Cardano, the price is currently trading near $0.80, with a target of $1.75 in Q4 being cited as a potential breakout if regulatory clarity is achieved [4].

Emerging altcoin projects are also capturing investor attention. MAGACOIN FINANCE, for instance, is being highlighted as a high-growth potential altcoin presale with strategic appeal for both retail and institutional investors. Whale activity in the project suggests a diversification strategy, with early buyers signaling confidence in its future performance [3]. Similarly, Little Pepe (LILPEPE) has garnered significant presale traction, with projections of up to 18,000% returns, though it is important to note that meme coins remain highly speculative [6].

In summary, the regulatory environment for altcoin ETFs is shifting, with Solana and XRP leading the charge and Cardano following closely behind. These approvals could not only inject billions into the market but also redefine the role of altcoins in institutional portfolios. As the SEC prepares to render decisions in October 2025, investors are advised to monitor both regulatory updates and technical developments to navigate the evolving crypto landscape.

Source:

[1] Spot Solana/XRP ETF buzz - Here's what approval would do to their prices (https://eng.ambcrypto.com/spot-solana-xrp-etf-buzz-heres-what-approval-would-do-to-their-prices/)

[2] Solana Price Stuck Below $210, Breakout Ahead as ETF Approval Odds Hit 99% (https://finance.yahoo.com/news/solana-price-stuck-below-210-144832098.html)

[3] Solana ETF Odds at 95% — Is SOL the Best Altcoin to Buy Before October Decision? (https://coincentral.com/solana-etf-odds-at-95-is-sol-the-best-altcoin-to-buy-before-october-decision/)

[4] Cardano Price Prediction: Could ADA Hit $1.75 Before ETF Approval? (https://coindoo.com/cardano-eyes-1-75-in-q4-is-ada-the-best-altcoin-to-buy-before-etf-approval/)

[5] Grayscale Files Registration Forms for Polkadot and Cardano ETFs (https://bravenewcoin.com/insights/grayscale-files-registration-forms-for-polkadot-and-cardano-etfs)

[6] Solana (SOL) and Cardano (ADA) See Reduced Attention as Little Pepe (LILPEPE) Predicted to Rise Significantly (https://www.tribuneindia.com/partner-exclusives/solana-sol-and-cardano-ada-see-reduced-attention-as-little-pepe-lilpepe-predicted-to-rise-significantly/)