Asset managers VanEck and 21Shares have officially submitted S-1 applications to the US Securities and Exchange Commission (SEC) for the primary spot Solana ETF in a serious development for the cryptocurrency industry. 

This move comes because the Bitcoin ETF market has experienced significant success since its launch in January, with the Ethereum ETF market expected to begin trading within the upcoming week.

Nevertheless, Matthew Sigel, VanEck’s Head of Digital Asset Research, has emphasized that the last word approval and likelihood of trading for the anticipated Solana ETF market heavily rely on the final result of the upcoming US Presidential election. 

That is attributable to notable differences of their approaches to crypto regulation and the potential change in SEC leadership, which plays a pivotal role within the approval process.

Sigel Calls For Fair Approval Process For Solana ETF

During a recent Bloomberg interview, Sigel highlighted the growing influence of crypto voters within the election and a shifting regulatory environment in Washington. He stated, “We’re already seeing a change within the regulatory environment on the elected official level. Multiple Democrats voting for pro-crypto laws.”

Cryptocurrencies have grow to be a outstanding topic within the race for the White House, with the Biden administration adopting a special approach to digital asset regulation than former President Donald Trump, who expressed support for the industry.

Sigel further noted that the dearth of a regulated futures marketplace for Solana could impede the ETF’s approval. He attributed this to SEC Chairman Gary Gensler’s influence: “We predict that’s again Gensler Psyop. He has created that condition since taking power.” 

Sigel expressed confidence that with the evolving regulatory landscape, the Solana ETFs could still be approved even when Biden wins the election. He emphasized that the final result also is dependent upon the SEC chair and urged the SEC to adopt a good and timely approval process.

Addressing the regulatory environment, Sigel criticized the present situation, particularly concerning Solana. Nevertheless, he emphasized that if Ethereum-based products are allowed to trade, it might cement Ethereum’s status as a commodity, and the identical principle should apply to Solana.

Galaxy Digital Evaluation

Alex Thorn, Head of Research at Galaxy Digital, analyzed on-the-spot Solana ETP filings by VanEck and 21Shares, just like Sigel’s approach. 

Thorn highlighted the importance of the recently passed FIT21 Act, which clarifies the regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC). This laws could play an important role in future cryptocurrency regulation, clarifying whether digital assets ought to be treated as commodities or securities. 

Thorn noted that such clarity could improve the possibilities of ETP approvals for digital currencies beyond Bitcoin and Ether, including Solana.

Overall, the trail forward for Solana ETFs faces regulatory hurdles and uncertainties. VanEck’s history of early filing demonstrates their strategic approach, they usually could also be banking on the final result of the US presidential election. 

The fate of the Solana ETF will rely on the election result, potential SEC leadership changes, and ongoing developments within the regulatory landscape.

On the time of writing, Solana’s native token SOL is trading at $141, following the final market downtrend recorded on Wednesday, leading to a price drop of 5% within the 24-hour time-frame. 

Featured image from DALL-E, chart from TradingView.com