VanEck, a pioneer in the cryptocurrency ETF sector, has submitted a filing for a Solana exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This move underscores VanEck’s commitment to expanding its digital asset offerings, capitalizing on Solana’s growing prominence in the cryptocurrency market.
Solana, the native cryptocurrency of a high-performance blockchain designed for smart contracts, is currently the fifth-largest token with a market capitalization of $69 billion, according to CoinMarketCap. Known for its speed and efficiency, Solana is positioned as a formidable alternative to Ethereum.
The announcement of the Solana ETF filing comes at a time when the SEC is evaluating nine proposals for spot Ethereum funds, with potential approvals speculated to be imminent. Market analysts, including Bloomberg’s Eric Balchunas, have suggested that these Ethereum ETFs may receive approval as early as July 4.
Matthew Sigel, head of digital assets research at VanEck, revealed the filing on June 27 via X, emphasizing Solana’s utility and decentralized nature. Sigel stated, “We believe the native token, SOL, functions similarly to other digital commodities such as Bitcoin and Ether. It is used to pay for transaction fees and computational services on the blockchain and can be traded on digital asset platforms or used in peer-to-peer transactions.”
Another one. First to file for a Solana exchange-traded fund. https://t.co/klazclgYc6
— VanEck (@vaneck_us) June 27, 2024
The proposed VanEck Solana Trust aims to track the performance of Solana, excluding operational expenses, and will list on the Cboe BZX Exchange if approved. The trust will use the MarketVector Solana Benchmark Rate index, based on data from the top five SOL trading platforms.
The filing follows the SEC’s recent approval of spot Ethereum ETFs, which marked a significant milestone in recognizing Ethereum as a commodity. This approval has spurred optimism about the potential for similar approvals for other digital assets, including Solana.
With Solana’s recent 8% rise in value and its strategic positioning in the market, the VanEck Solana Trust represents a notable development in the cryptocurrency ETF landscape. If approved, it could pave the way for broader acceptance and integration of Solana within traditional financial markets.
