The cryptocurrency market has taken another step towards regulated, mass investment in cryptocurrencies with the first filing for a Solana ETF in the US by asset manager and Bitcoin ETF issuer VanEck.
Following the approval of spot Bitcoin ETFs in January and the anticipated launch of Ethereum ETFs in July, this development marks another milestone in the expansion cryptocurrency investment options for retail and institutional investors.
News of VanEck’s Solana ETF registration with the U.S. Securities and Exchange Commission (SEC) has caused a surge in the native token SOL, with its price rising nearly 8% following the disclosure by Matthew Sigel, head of digital asset research at VanEck.
VanEck’s confidence in its Solana ETF filing
On a social media postsSigel highlighted VanEck’s reasons behind the request, emphasizing Solana’s potential as a competitor to Ethereum and its ability to support multiple applications such as payments, trading, gaming and social interactions.
Describing Solana as an open-source blockchain software designed for scalability, speed, and low costs, Sigel explained that the platform offers an enhanced user experience across multiple use cases.
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Sigel also cited Solana’s ability to process thousands of transactions per second with low fees and use a safe mechanism based on proof of history and proof of stake as reasons for the bold decision to file the Solana ETF with the SEC on Thursday.
VanEck believes Solana’s high yield, low fees, strong security, and vibrant community make it an attractive option for an ETF, providing investors exposure to an innovative open source ecosystem.
Furthermore, Sigel believes that the native token SOL serves as a means of paying transaction fees and computing services on the Solana blockchain, similar to Bitcoin and Ethereum on their respective networks, suggesting that it should be classified as merchandise rather than a crypto security, thus making a strong case for the SEC to approve the Solana ETF.
Analysts anticipate bullish sentiment
While news of a Solana ETF filing has generated excitement, some experts are expressing caution. For example, Bloomberg ETF expert James Seyffart suggests that the Solana ETF may only launch in 2025 under a new administration in the White House and the SEC, as the expected US election date approaches, with crypto regulation one of the main topics in the race for the White House .
Additionally, market analyst Adam Cochran highlights unresolved SEC claims and futures volume requirements from the Chicago Mercantile Exchange (CME) in the US as potential challenges to ETF approval. Cochran further said:
However, if this passes, the floodgates will open, we will receive ETFs for everything and it would be an extremely bullish market for every coin.
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Ultimately, VanEck’s filing for a Solana ETF sets an important precedent for the cryptocurrency market. If successful, it could pave the way for wider adoption and recognition of Solana as a valuable digital commodity offering alternative opportunities to investors, builders and entrepreneurs.
At the time of writing, SOL was trading at $147 and had even reached the $150 resistance line, which would be a short-term hurdle for the token in its attempts to reclaim previously lost levels.
Featured image of DALL-E, chart from TradingView.com