banner

First Solana ETF Filed in the U.S. Boosts SOL Token Price

VanEck has made history by filing the first Solana (SOL) exchange-traded fund (ETF) in the U.S., following a similar product filing in Canada by 3iQ just six days earlier. This significant move lifted SOL token’s 24-hour gain to almost 8%.

VanEck’s Pioneering Move

Known for being a trailblazer in the ETF space, VanEck was the first to file for a spot Ether (ETH) ETF in 2021. This happened nearly three years before the Securities and Exchange Commission (SEC) began engaging with major issuers like BlackRock, Fidelity, and Ark Invest. VanEck’s latest filing highlights the firm’s proactive approach in the digital assets sector.

SOL as a Commodity

Matthew Sigel, VanEck’s head of digital assets research, emphasized in a post on X that SOL functions similarly to other digital commodities like Bitcoin and ETH. He explained that SOL is used to pay for transaction fees and computational services on the blockchain, reinforcing its classification as a commodity rather than a security.

Why Solana?

VanEck’s interest in Solana stems from its competitive edge over Ethereum. Sigel pointed out Solana’s unique combination of scalability, speed, and low costs as key factors in the decision to file for a Solana ETF. These attributes make Solana a strong contender in the blockchain space.

Future of Crypto ETFs

The SEC approved the first spot Bitcoin (BTC) ETF in January, and an Ether ETF is anticipated soon. Analysts predict that ETH ETFs could attract $5 billion in net inflows within the first five months. Experts suggest that Solana could be the next cryptocurrency to be packaged into an ETF due to its similarities with Ethereum. However, serious discussions about a Solana ETF are expected to start only in 2025, with some analysts also considering Ripple’s XRP as a potential candidate.

Market Speculations

Bloomberg Intelligence ETF analyst James Seyffart speculates that the Solana ETF might only launch around 2025, depending on the political landscape and regulatory changes. He cautions that even with a new administration, the approval is not guaranteed.

banner

Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

Follow Us

Top Selling Multipurpose WP Theme

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

banner

Crypto feed news

Our team of crypto enthusiasts and market mavens is on a mission to deliver the latest, juiciest, and most insightful updates from the ever-evolving world of cryptocurrencies.

@CryptoFeedNews 2023 All Right Reserved. Designed and Developed by TheDevThingz

Skip to content