The Solana Spot ETF is expected to be approved this week, which will be the next altcoin explosion cycle.

The wave of tokenization of real-world assets (RWA) has not completely subsided, and the Crypto Assets market has welcomed a new milestone — the United States is about to approve the first Solana Spot ETF, which will introduce a staking rewards feature for the first time. This groundbreaking product not only seamlessly integrates TradFi with on-chain yields but also provides a convenient participation channel for institutional investors. The approval of the Solana ETF marks an important step towards the legalization of alts and could potentially become a catalyst for igniting the altcoin Supercycle.

Solana ETF: The Perfect Combination of on-chain Revenues and Institutional Investment

The highly anticipated Solana Spot ETF (expected to be approved this week) will become the first approved altcoin ETF after Ethereum, which is of great significance. Its uniqueness lies in the built-in stake rewards mechanism, allowing investors not only to hold SOL but also to earn returns through staking. This innovative design will fundamentally change the traditional model of ETF products.

In 2024 and 2025, Solana has become a leader in the crypto market due to its strong performance in the DeFi and meme coin sectors. The explosive growth of platforms like Pump.fun and Jupiter, along with low fees and high-speed transactions, as well as a thriving ecosystem, make Solana an ideal choice for attracting institutional funds after Bitcoin and Ethereum. Institutions like VanEck are actively promoting ETF applications, and there are even rumors of BlackRock's interest, further enhancing Solana's potential.

The significance of the Solana ETF goes far beyond this. It is not only a victory for Solana but could also open a door for the entire altcoin market. Analysts believe that this ETF will validate the appeal of Layer 1 networks in terms of compliance and practicality for TradFi, paving the way for the approval of other altcoin ETFs and triggering a domino effect.

Altcoin ETF Craze: Who Will Be Next?

The approval of the Solana ETF has sparked intense speculation in the market about the next altcoin ETF, with the following cryptocurrencies being considered potential candidates:

XRP: With Ripple's ongoing victories in legal battles and its extensive use in cross-border payments, XRP has strong ETF potential. Its non-securitized legal status and expansion in Asian and Middle Eastern markets further attract the attention of institutional investors.

Cardano (ADA): Known for its decentralization and academic rigor, Cardano's "development-first" philosophy is well recognized by regulators. The recent launch of the Midnight privacy airdrop has further strengthened the competitiveness of its ecosystem.

Litecoin (LTC): As a "veteran" of the crypto market, Litecoin's similarities to Bitcoin make it a reliable choice for ETFs. Its long-term stable operating history and clear halving cycle provide institutions with a low-risk investment option.

Dogecoin (DOGE): Despite its high volatility, Dogecoin has frequently made headlines in mainstream media thanks to Elon Musk's continued endorsement. If meme coin ETFs become a trend, Dogecoin will undoubtedly be a frontrunner.

PENGU: As an emerging meme coin based on Solana, PENGU has emerged with the buzz on social media and early application dynamics. In a fully risked market environment, the possibility of a meme coin ETF cannot be ignored.

Market Sentiment: Bullish Signals of the Supercycle

The launch of the Solana ETF is timely. With Bitcoin prices breaking through $100,000 and market enthusiasm soaring, altcoins usually rise following Bitcoin's fluctuations. The approval of the ETF will further amplify this effect, injecting strong momentum into the altcoin Supercycle. The significance of the ETF lies in lowering the investment threshold, allowing traditional capital to easily enter the crypto market, while also granting altcoins higher legitimacy and exposure. Looking back at the crypto frenzy of 2021, speculative sentiment and media attention drove prices to soar. Now, with the backing of physical financial products, the next round of increases may be even more intense.

How investors can respond: seize the opportunity

The crypto market is rapidly changing, and the biggest rewards belong to the pioneers. The approval window for the Solana ETF is brief; once retail investors' FOMO (fear of missing out) sentiment spreads, market volatility will intensify, and entry costs and risks will quickly rise.

Communication suggestions:

Examine the portfolio: Focus on altcoins with strong narratives and real potential such as XRP, Cardano, Litecoin, Dogecoin, and PENGU.

Track ETF dynamics: Closely monitor regulatory agencies and institutional filings to get the latest updates.

Develop a strategy: set price alerts, clarify entry and profit points, and avoid blindly chasing highs.

Pay attention to speculative forces: Even if the ETF is not approved, market speculation may drive prices up, and do not underestimate the media and community's role in this.

Final thoughts

The approval of the Solana Spot ETF is not only a victory for a single product but also a signal — altcoins are stepping onto the stage of mainstream finance. It could become the spark that ignites enthusiasm in the crypto market since the bull market of 2021. Whether you are an institutional investor or a retail investor, now is the time to prepare for this supercycle that may change the landscape of crypto investment.