This is the first attempt to create a Solana ETF by Wall Street giant VanEck, which has also successfully established Bitcoin and Ethereum ETFs.
On the evening of June 27, American investment management firm VanEck announced that it had filed an application with the U.S. Securities and Exchange Commission (SEC) with the intention of launching an ETF for Solana (SOL).
Notably, this ETF will be a spot ETF, directly purchasing and holding SOL to back the shares issued to investors, rather than just gaining exposure through futures contracts like futures ETFs. This product will be listed on the Cboe BZX Exchange, but its legal status remains unclear as Solana (SOL) was previously accused of being a security in the SEC’s lawsuit against Coinbase and Binance.
VanEck is one of the Wall Street giants that has participated in the creation of Bitcoin and Ethereum ETFs in recent times.
A spokesperson for VanEck stated that the company believes SOL has commodity-like properties similar to BTC and ETH, and also serves other purposes beyond investment, such as paying blockchain transaction fees and supporting various applications in the Solana ecosystem like DeFi, NFTs, etc. Moreover, the Solana blockchain itself has achieved the necessary level of decentralization. However, a Cboe representative indicated that the prospects for a Solana spot ETF appearing in the U.S. at this time are not high, as this cryptocurrency does not yet have a futures ETF product. Both BTC and ETH needed to have their futures ETFs approved before progressing to becoming spot ETFs.
VanEck’s move comes just a few days after the Solana ETF by 3iQ was announced in Canada.
SEC Chairman Gary Gensler, in his statement approving the Bitcoin ETF in January this year, mentioned that only BTC has been recognized as not being a security, while other cryptocurrencies are still under suspicion.
Nevertheless, in May, the SEC gave preliminary approval to Ethereum ETF proposals, a 180-degree shift from a few days earlier, with much speculation that it was influenced by President Biden’s administration amid Donald Trump’s continuous use of crypto as a pressure point ahead of the November election. It is predicted that Ethereum ETFs will commence trading before the U.S. Independence Day on July 4, as registrants have completed their S-1 filings this past week.
SOL prices have surged nearly 7% in the past hour following the news of VanEck filing with the SEC to establish a Solana spot ETF.