Asset Management Firm VanEck has made history by filing the first application for a Solana ETF in the United States. Per the filing lodged with the US Securities and Exchange Commission (SEC), the product is labeled VanEck Solana Trust.
Solana ETF To Join Bitcoin and Ethereum Offerings
The more than a decade stalemate in the approval for crypto ETPs ended in January with spot Bitcoin ETF approval. In May, the SEC also made a turnaround against the market expectations when it approved 8 spot Ethereum ETF products.
Since then, the speculations regarding other crypto ETFs have grown. VanEck, known for its pioneering role in the industry has stepped up its ante by filing an actual Solana ETF. The firm said the exchange-traded fund will track the price of Solana.
In describing the motivation behind the filing, Matthew Sigel, VanEck’s Head of Research uncovered the Solana qualities. He emphasized that Solana might serve as a valuable commodity to those looking to break the BTC/ETH duopoly.
I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US.
Some thoughts on why we believe SOL is a commodity are below.
Why did we file for it?
A competitor to Ethereum, Solana is open-source blockchain software designed to… pic.twitter.com/XwwPy8BXV2
— matthew sigel, recovering CFA (@matthew_sigel) June 27, 2024
He also pointed out how Solana is supporting a very vibrant Decentralized Finance (DeFi) and Non-Fungible Token (NFT) ecosystems. While Solana has faced its own challenges, Sigel highlighted its strength in the absence of Sharding or Layer 2 protocols.
While VanEck is the first to apply for Solana ETF in the US, Canada’s 3iQ pioneered this move globally as reported earlier by Crypto-Vanguard.
Potential Launch Timeline
According to Bloomberg Senior ETF Analyst James Seyffart, there is no attached timeline to the launch of the Solana ETF. This, according to him is because VanEck only filed an S-1 that showed the intention for trading.
Before the 19b-4 filing is lodged that will show the potential time track, he gave a projection into the feasible launch timeline. Seyffart set a 2025 launch date for the Solana ETF, taking account of any potential postponement from the SEC.
First SOL ETF filing in the U.S. Will be interesting to see if other issuers immediately follow suit. Early thoughts are that this only has a shot to launch sometime in 2025 if we have a new admin in the White House and SEC. Even then not guaranteed. https://t.co/I1yoWNpdd4
— James Seyffart (@JSeyff) June 27, 2024
The news of the VanEck Solana ETF has set Solana on a bullish path. The coin is now trading for $149.05, up by 7.88% in the past 24 hours.
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