Crypto market takes a step towards cryptocurrency regulation and mass investment as asset management company and Bitcoin ETF issuer VanEck files first-ever application for Solana ETF in the United States.
Following the approval of a Bitcoin spot exchange-traded fund in January and the expected launch of an Ethereum ETF in July, this development marks another milestone in expanding cryptocurrency investment options for retail and institutional investors.
The news of VanEck’s submission of a Solana ETF to the U.S. Securities and Exchange Commission (SEC) led to a surge in the native token SOL, with VanEck’s Director of Digital Assets Research, Matthew Sigel, revealing that its price rose by almost 8% after the announcement.
Sigel emphasized the reasons for VanEck’s application in a social media post, highlighting Solana’s potential as a competitor to Ethereum and its ability to support various applications such as payments, trading, gaming, and social activities.
Describing Solana as open-source blockchain software aimed at achieving scalability, speed, and low cost, Sigel explained that the platform offers enhanced user experience across multiple use cases.
Sigel also mentioned Solana’s ability to process thousands of transactions per second at low cost and its use of security mechanisms based on historical proof and stake proof, which is the bold move behind the submission of the Solana ETF to the SEC on Thursday.
VanEck believes that Solana’s high throughput, low cost, strong security, and vibrant community make it an attractive choice for an ETF, providing investors with an innovative open-source ecosystem.
Furthermore, Sigel argued that the native token SOL serves as a means of payment for transaction fees and computational services on the Solana blockchain, similar to Bitcoin and Ethereum in their respective networks, indicating that it should be classified as a commodity rather than a security, providing ample reasons to support the approval of the Solana ETF by the SEC.
Analysts anticipate bullish sentiment
While the news of the Solana ETF application is exciting, some experts express caution. For example, Bloomberg ETF expert James Seyffart suggests that the Solana ETF may only launch in 2025 under a new government leadership at the White House and the SEC, with cryptocurrency regulation being a major issue in the presidential election.
In addition, market analyst Adam Cochran emphasizes that unresolved claims by the SEC and the Chicago Mercantile Exchange (CME) futures trading volume requirement are potential challenges for ETF approval. Cochran further stated:
“However, if this does get approved, the floodgates will open and we will get ETFs for everything, which will be a very bullish market for every coin.”
Ultimately, VanEck’s submission of the Solana ETF sets an important precedent for the cryptocurrency market. If successful, it will pave the way for wider adoption and acceptance of Solana as a valuable digital commodity, providing alternative opportunities for investors, builders, and entrepreneurs.
The price of SOL is showing an upward trend on the daily chart. Image source: TradingView.com
At the time of writing, the trading price of SOL is $147, even reaching the resistance line of $150, which will hinder the token’s recovery to previous levels in the short term.
