VanEck Files for Spot Solana ETF with SEC
VanEck has submitted a proposal to the US Securities and Exchange Commission (SEC) to establish a spot Solana exchange-traded fund (ETF). This move aims to track the price performance of Solana’s native SOL token. The filing indicates that the Trust does not plan to stake SOL tokens for rewards.
Impact on SOL’s Price
The news of the application caused SOL’s price to surge by approximately 10%, reaching nearly $150. According to Coinglass data, this sudden price hike resulted in losses exceeding $5 million for short traders betting against its price within the past hour.
Why VanEck Filed for a Spot Solana ETF
The Rationale Behind the Application
Matthew Sigel, head of digital research at VanEck, explained the reasons for the firm’s application. He emphasized that the SOL token operates similarly to a commodity. Solana is described as an open-source blockchain platform suitable for various applications, including payments, trading, gaming, and social interactions. Sigel highlighted Solana’s high throughput, low transaction fees, stringent security measures, and active community as key factors that make it a strong candidate for an ETF.
Sigel’s Insights
“We believe the native token, SOL, functions similarly to other digital commodities such as Bitcoin and ETH. Users utilize it to pay for transaction fees and computational services on the blockchain. Like ether on the Ethereum network, SOL can be traded on digital asset platforms or used in peer-to-peer transactions.”
Will the Spot Solana ETF Be Approved?
Potential Approval Challenges
Eric Balchunas, a senior ETF analyst at Bloomberg, pointed out that the lack of a SOL futures product might hinder the spot ETF’s approval. He suggested that a change in the US presidential administration could improve approval chances, particularly under a pro-crypto SEC leadership like Hester Peirce.
Expert Opinions
“The knee-jerk reaction here is, ‘Oh, this will never be approved because there aren’t Solana futures,’ I agree, but.. if there is a change at POTUS, I think anything is possible. Just imagine Hester Peirce (or someone like that) running the SEC.”
Jake Chervinsky, Chief Legal Officer of Variant Fund, added:
“There’s nothing preventing the SEC from approving a spot crypto ETF without a futures market. It’s just how the agency has interpreted the Exchange Act, but that could change under new leadership.”
Industry Implications
Market experts believe the ETF application indicates a shift towards mainstream financial acceptance of crypto. Over the past year, cryptocurrency has garnered significant attention among Americans, especially following the launch of spot Bitcoin ETFs in January.
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