VanEck has filed an S-1 with the SEC to create a Solana-ETF spot exchange-traded fund. How is the crypto community reacting?
the document He says VanEck’s Solana ETF is called the VanEck Solana Trust. If approved, the product will trade on the Cboe BZX platform. The fund does not offer SOL shares—all fund shares will be sold and redeemed for cash only.
VanEck is one of the first US asset managers to offer investors access to global markets and investments in gold, emerging markets, and ETFs. VanEck is one of the companies that launched a Bitcoin ETF and is expecting to launch an Ethereum ETF. However, the company’s introduction of a Solana ETF is the first and only one for the company.
Why Solana ETF?
Matthew Siegel, head of digital assets research at VanEck, explained why the company decided to launch the Solana ETF. He initially cited scalability, high speed, and low fees, which offer huge potential to improve the user experience.
“We believe the native token, SOL, functions similarly to other digital goods such as Bitcoin and Ethereum. It is used to pay transaction fees and computational services on the blockchain.”
Matthew Siegel, Head of Digital Asset Research at VanEck
He added that thanks to its high utility, VanEck is confident that SOL will be useful to a wide audience, including investors, developers and even ordinary businessmen looking for an alternative to diversify their investment portfolios.
“The wide range of applications and services powered by the Solana ecosystem, from decentralized finance (DeFi) to non-fungible tokens (NFTs), underscores the utility and value of SOL as a digital commodity.”
Matthew Siegel, Head of Digital Assets Research at Van Eck
Matthew Siegel, Head of Digital Assets Research at VanEck
Another player in the ETF arena
VanEck has entered the race to launch a Solana-ETF amid expectations of launching a similar fund for Ethereum. According to initial estimates, investors may be able to access it in July.
Amid the approval of the launch of Ethereum-ETFs, the SEC dropped its claims against the project.
VanEck is confident that SOL does not violate U.S. securities laws. Therefore, according to the authors, the SEC has no reason to deny the launch of a Solana spot ETF.
At the same time, GSR Markets Analysts are confident that the Solana spot ETF will absorb 2% and 5% of Bitcoin funds in bear and standard market scenarios, respectively. This would increase Solana’s price by 1.4 and 3.4 times. The report states that Solana’s growth potential is significant, with the potential for significant increases in market value and price.
“While the Solana spot ETF could see inflows as a percentage of Bitcoin of 2%, 5%, or 14% under the bearish, baseline, and blue sky scenario, respectively, we must now adjust for the impact the spot ETFs might have.” On SOL for its smaller size, which we use as market capitalization specifically, Solana’s market capitalization has averaged only 4% of Bitcoin’s value over the past year.
GSR Market Analysts
How do experts react?
Eric Balchunas, a Bloomberg analyst, says that the chances of launching Solana spot ETFs may decrease because the list of investment vehicles in SOL is inferior to the list of investment vehicles in Ethereum.
However, a change in the US president could lead to a liberalization of the cryptocurrency industry. Therefore, Solana ETFs are likely to be approved only in 2025.
As FOX’s Eleanor Terrett reminded us, SOL is not yet traded on a regulated futures market, unlike BTC and ETH, so approval is still a long way off. However, VanEck can claim to have been the first to apply for the first Solana ETF in the US.
Venture capitalist Anthony Pompliano said Van Eck’s filing is further evidence that altcoins are coming to Wall Street. Also confident The long-awaited bullish trend is set to emerge amid the race to launch new spot altcoin ETFs.
Will Solana ETFs be approved?
The cryptocurrency market is awaiting a decision on spot ETFs. Negotiations between asset managers and regulators are now entering their final stages.
However, things are more complicated in the Solana ETF case. Since there are no Solana futures ETFs in the US, unlike Bitcoin and Ethereum, futures products based on these crypto assets appeared before spot ETFs. This approach is explained by the SEC’s concerns about potential fraud and market manipulation.
As a result, the Solana-based spot ETF faces a more difficult road before it is accepted into the market.