VanEck
has
filed
plans
with
the
US
Securities
and
Exchange
Commission
to
create
a
spot
Solana
exchange-traded
fund
(ETF).
If
approved,
the
VanEck
Solana
Trust
will
reflect
the
performance
of
the
price
of
the
blockchain
network’s
native
SOL
token.
However,
the
filing
stated
that
the
Trust
has
no
plans
to
stake
the
SOL
tokens
for
staking
rewards.
Nonetheless,
news
of
the
application
pushed
SOL’s
price
up
by
around
10%
to
nearly
$150.
According
to
Coinglass
data,
the
sudden
price
increase
wiped
out
more
than
$5
million
from
short
traders
speculating
on
its
price
within
the
past
hour.
Why
VanEck
filed
for
a
spot
Solana
ETF
Matthew
Sigel,
VanEck’s
head
of
digital
research,
explained
the
rationale
behind
the
firm’s
application,
emphasizing
that
the
SOL
token
functions
like
a
commodity.
Sigel
noted
that
Solana
is
an
open-source
blockchain
platform
tailored
for
diverse
applications
such
as
payments,
trading,
gaming,
and
social
interactions.
According
to
him,
Solana’s
robust
attributes,
including
high
throughput,
low
transaction
fees,
stringent
security
protocols,
and
a
vibrant
community,
position
it
favorably
for
an
ETF.
He
added:
“We
believe
the
native
token,
SOL,
functions
similarly
to
other
digital
commodities
such
as
Bitcoin
and
ETH.
It
is
utilized
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
it
be
approved?
Eric
Balchunas,
Bloomberg’s
senior
ETF
analyst,
highlighted
that
the
absence
of
a
SOL
futures
product
could
affect
the
spot
ETF
approval
prospects.
However,
he
noted
that
a
change
in
US
presidential
leadership
might
facilitate
approval,
particularly
under
a
pro-crypto
SEC
leadership,
such
as
Hester
Peirce.
He
said:
“The
knee-jerk
reaction
here
is,
‘Oh,
this
will
never
be
approved
because
there
aren’t
Solana
futures,
‘
I
agree,
but..
if
there
is
change
at
POTUS,
I
think
anything
possible.
Just
imagine
Hester
Peirce
(or
someone
like
that)
running
the
SEC.”
Jake
Chervinsky,
the
CLO
of
crypto
fund
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.”
Meanwhile,
market
experts
said
the
ETF
application
further
shows
that
the
industry
is
moving
toward
mainstream
financial
acceptance.
Over
the
past
year,
crypto
has
gained
significant
attention
among
Americans,
especially
with
the
launch
of
spot
Bitcoin
ETFs
in
January.
Mentioned
in
this
article
Go to Source
Author: Oluwapelumi Adejumo
