TL;DR

The SECs pending decision on Grayscales Solana ETF, due today, could have a major impact on the underlying token. The Chicago Mercantile Exchanges plan to launch SOL and XRP futures on February 10 has already influenced the performance of the assets. The products (if they go live) may attract more institutional investors and positively influence both tokens in the long term.

The Potential Catalyst

Solana (SOL) has been among the top-performing cryptocurrencies in the last week, with its price soaring by over 20% for that timeframe. It reached a new all-time high of more than $285 on January 19, while currently, it trades just south of $250.

SOL Price, Source: CoinGecko One important factor suggesting that the bull run may prevail is Grayscales intention to convert its Solana Trust Fund into an exchange-traded fund (ETF). The agency responsible for approving such filings in the US is the Securities and Exchange Commission (SEC). Its initial decision deadline for Grayscales investment vehicle is set for today (January 23).

The recent shifts in the Commissions leadership have caused some industry participants to speculate that the aforementioned ETF could receive the necessary green light. Up until January 20, the SEC was led by Gary Gensler, who was known as an enemy of the cryptocurrency industry. However, he stepped down on the day of Donald Trumps inauguration, with the pro-crypto Mark Uyeda succeeding him at the helm. 

Other well-known companies that have filed to launch SOL ETFs on American soil include VanEck, 21Shares, Bitwise, and Canary Capital. The SEC has until January 25 to give its nod or deny those applications. 

It is important to note that the watchdog has the authority to extend its review period beyond the initial deadlines. This was a common policy during Genslers reign, and we have yet to see whether the agency will keep this practice after the changes at the top.

Nearly a year ago, the SEC approved a wave of spot Bitcoin ETFs for trade in the United States. The companies behind the funds included popular names such as BlackRock, Grayscale, Bitwise, Wisdom Tree, and others. The price of the primary cryptocurrency plunged after the announcement, but a few weeks later, it started pumping substantially. 

This might serve as a warning to investors that the potential launch of a spot Solana ETF in America could be generally beneficial for the valuation of the underlying asset but may also lead to enhanced volatility and a move to the downside in the short term.

The Additional Bullish Element

Another factor that could positively impact Solanas price is the supposed plan of the Chicago Mercantile Exchange to introduce SOL and XRP futures. The financial derivatives exchange is looking to do so on February 10. 

The news had an immediate impact on the prices of both assets. SOL pumped to as high as $270, whereas XRP briefly jumped to $3.28. 

The contracts (if approved) will allow people to speculate on the future price of the aforementioned assets without actually owning them. They may attract an additional number of investors into the Solana and Ripple ecosystems, possibly having a positive influence on the prices of their native tokens.