The cryptocurrency market has taken one other step towards regulated and mass investment in cryptocurrencies with the first-ever application for a Solana ETF within 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 one other milestone in expanding cryptocurrency investment options for retail and institutional investors.
The news of VanEck’s Solana ETF filing with the US Securities and Exchange Commission (SEC) caused a surge within the native token SOL, with its price rising nearly 8% upon disclosure by Matthew Sigel, VanEck’s head of digital asset research.
VanEck’s Confidence In Its Solana ETF Filing
In a social media post, Sigel highlighted VanEck’s reasons behind the filing, emphasizing Solana’s potential as a competitor to Ethereum and its ability to support various applications resembling payments, trading, gaming, and social interactions.
Describing Solana as 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 1000’s of transactions per second at low fees and use a secure mechanism based on proof-of-history and proof-of-stake as reasons for the daring move to file the Solana ETF with the SEC on Thursday.
VanEck believes that Solana’s high throughput, low fees, strong security, and vibrant community make it a beautiful option for an ETF, providing investors with exposure to an modern open-source ecosystem.
As well as, Sigel believes that the native token SOL serves as a way of payment for transaction fees and computing services on the Solana blockchain, just like Bitcoin and Ethereum of their respective networks, suggesting that it must be classified as a commodity fairly than a crypto security, thus having a robust argument for SEC approval of the Solana ETF.
Analysts Anticipate Bullish Sentiment
While the news of a Solana ETF filing has generated excitement, some experts express caution. As an example, Bloomberg ETF expert James Seyffart suggests that the Solana ETF might only launch in 2025 under a latest administration within the White House and SEC because the anticipated election date within the US nears, with crypto regulation as one in all the primary topics within the race for the White House.
As well as, market analyst Adam Cochran highlights unresolved SEC claims and Chicago Mercantile Exchange (CME) futures volume requirements within the US as potential challenges to ETF approval. Cochran further said:
If this does get approved though, floodgates opened, we’re getting ETFs for all the pieces and it might be a wildly bullish marketplace for each coin.
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Ultimately, the filing of a Solana ETF by VanEck sets a vital precedent for the cryptocurrency market. If successful, it could pave the best way for broader adoption and recognition of Solana as a worthwhile digital commodity, offering investors, builders, and entrepreneurs alternative opportunities.
The every day chart shows SOL’s price trending upwards. Source: SOLUSD on TradingView.com
On the time of writing, SOL was trading at $147 and even reached the $150 resistance line, which could be a near-term obstacle for the token in its intentions to regain previously lost levels.
Featured image from DALL-E, chart from TradingView.com