The famous investment company is creating a buzz on the crypto market, by filing the very first Solana ETF application in the US. Here’s what you need to know.
VanEck pioneers the Solana ETF
Since the beginning of the year, the Bitcoin Spot ETFs have proved their worth in terms of performance with investors. And subsequently the Ethereum ETFs were accepted by the SEC in the USA.
Since then, rumors have been rife as to the next crypto to benefit from such an investment vehicle on the major U.S. exchanges.
In an almost improbable move, VanEck has shaken up the crypto market. He announcing that it has filed an application for an ETF based on SOL, the cryptocurrency of the Solana blockchain.
Matthew Sigel, VanEck’s head of digital assets, offered some insight into why the US giant selected Solana as the cryptocurrency for its (eventual) next ETF:
“A competitor to Ethereum, Solana is an open-source blockchain software designed to handle a variety of applications, including payments, trading, gaming and social interactions. Operating as a single global state machine with no fragmentation or layer 2, Solana blockchain’s unique combination of scalability, speed and low cost can deliver a better user experience for many use cases.”
Thus, Matthew Nigel extolled the virtues of Solana through a lengthy thread, also explaining that Solana offers a “combination of high throughput, low fees, robust security and a strong community makes Solana an attractive option for an exchange-traded fund, offering investors exposure to a versatile and innovative open-source ecosystem.”
The head of VanEck also addressed the key question of whether SOL was considered a security or a commodity. A complex regulatory issue, sometimes very unclear, but one that helps determine whether a specific cryptocurrency can benefit from Gary Gensler’s SEC stamp of approval.
We believe that the native token, SOL, functions similarly to other digital commodities such as Bitcoin and ETH. […] SOL’s decentralized nature, high utility and economic feasibility align with the characteristics of other established commodities, reinforcing our belief that SOL can be a valuable commodity.
The SEC could, however, argue with these motivations. Indeed, last year, the regulator had declared that SOL, like Cardano’s ADA or Polygon’s MATIC, was indeed a security.
As with Bitcoin and Ether are the giants of American finance getting involved in the search for SOL ETFs ? We should know soon.
In any case, the SOL price gained almost 10 dollars following the news. Up over 7% in the last 24 hours, Solana’s cryptocurrency is currently trading at around $147.
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