The cryptocurrency market has taken another step towards regulated and massive cryptocurrency investment with the first-ever U.S. Solana ETF application by asset manager and Bitcoin ETF issuer VanEck.
Following the approval of spot Bitcoin ETFs in January and the expected 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 filing with the U.S. Securities and Exchange Commission (SEC) sent the price of its native SOL token soaring, with its price rising almost 8% following the disclosure by Matthew Sigel, VanEck’s head of digital asset research.
VanEck’s Confidence on Solana ETF Filing
IN social media postSigel highlighted VanEck’s reasons for filing, emphasizing Solana’s potential as an Ethereum competitor and its ability to support a variety of applications such as payments, commerce, gaming, and social interactions.
Describing Solana as an open-source blockchain software designed for scalability, speed, and low cost, Sigel explained that the platform offers an improved user experience across multiple exploit cases.
Sigel also mentioned Solana’s ability to process thousands of transactions per second with low fees and the exploit of, among others, sheltered mechanism relying on proof of track record and proof of stake as the reasons for its bold decision to file for registration of the Solana ETF with the SEC on Thursday.
VanEck believes that Solana’s high throughput, low fees, resilient security and lively community make it an attractive option for an ETF, providing investors access to an novel open source ecosystem.
Additionally, Sigel believes that the native SOL token serves as a means of payment for transaction fees and computational services on the Solana blockchain, similar to Bitcoin and Ethereum on their respective networks, suggesting that it should be classified as a commodity instead of a cryptocurrency security, which is a robust argument for the SEC to approve the Solana ETF.
Analysts predict bullish sentiment
While news of Solana filing for an ETF has sparked enthusiasm, some experts express caution. For example, Bloomberg ETF expert James Seyffart indicates that the Solana ETF could only be launched in 2025 under the up-to-date administration of the White House and the Securities and Exchange Commission (SEC), as the expected date of the US elections is approaching and the regulation of the cryptocurrency market will be one of the main topics of the race for the seat in White House.
Additionally, market analyst Adam Cochran overview of the most vital events pending SEC claims and Chicago Mercantile Exchange (CME) futures volume requirements in the U.S. as potential challenges to ETF approval. Cochran further said:
However, if approved, the floodgates will open, we will get ETFs for everything, and the market for every coin will be wildly bullish.
Ultimately, VanEck’s Solana ETF filing sets an vital precedent for the cryptocurrency market. If successful, it could pave the way wider adoption and recognizing Solana as a valuable digital commodity that offers alternative opportunities to investors, developers and entrepreneurs.
At the time of writing, SOL was trading at $147 and had even reached the resistance line at $150, which in the compact term would pose a hindrance for the token to regain previously lost levels.
Featured image from DALL-E, chart from TradingView.com
