VanEck files for spot Solana ETF but will it gain approval?
The post VanEck files for spot Solana ETF but will it gain approval? appeared on BitcoinEthereumNews.com.
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…
Filed under: News - @ June 27, 2024 9:16 pm