VanEck Files for First-Ever US Solana ETF, SOL Price Soars

Prominent digital asset manager VanEck has officially submitted an application to list a Solana ETF with the U.S. SEC.

Matthew Sigel, the Head of Digital Assets Research at VanEck, announced the development on X a few hours ago. VanEck’s official X handle also confirmed the filing, boasting of being the first asset manager to pursue a Solana ETF in the U.S. market.

Another one. First to file for a Solana exchange-traded fund. https://t.co/klazclgYc6

— VanEck (@vaneck_us) June 27, 2024

Why VanEck Wants Solana ETF

Notably, VanEck’s application for Solana ETF comes after the firm succeeds with similar products for Bitcoin and Ethereum. According to the announcement, VanEck’s motivation for pursuing this investment product stems from Solana’s favorable comparison to Ethereum. 

The firm highlighted Solana’s versatility in handling various applications, including trading, gaming, payments, and social engagements. VanEck also emphasized the unique benefits of Solana’s blockchain in terms of speed, scalability, and low costs.

Furthermore, VanEck expressed their belief that Solana’s native token, SOL, is a commodity similar to Bitcoin and Ethereum.

SOL Price Soars

Notably, this Solana ETF application comes amid heightened interest in the crypto community for the next crypto asset to get an ETF after Ethereum. 

Industry commentators, including billionaire Mike Novogratz, have forecasted Solana to be the right candidate for the next ETF. They often cited its close competition to Ethereum and broader market appeal.

Accordingly, the ultimate arrival of a Solana ETF application has sparked significant excitement in the crypto scene. Moreover, the excitement has been reflected in the market value of SOL. In particular, SOL has posted an 8% gain today, with a more pronounced surge occurring in the last few hours.

Approval for VanEck Solana ETF Unlikely Soon

Now that a Solana ETF has come before the SEC, the prospect of approval still remains uncertain. Bloomberg analyst James Seyffart has argued that the regulator will unlikely approve a Solana spot ETF without a Solana futures market regulated by the CFTC.

Furthermore, Solana’s prospects are hindered by the SEC’s previous ruling that SOL is a security.

Seyffart believes that VanEck’s Solana spot ETF application has a slim chance of launching, stressing it is only possible if there is a change in administration in the White House and the SEC by 2025. Even then, he notes that approval is not guaranteed.