Asset management giant VanEck has issued a Bitcoin spot ETF and is seeking SEC approval for an Ethereum spot ETF. Recently, VanEck submitted an application for the Solana ETF (VANECK SOLANA TRUST) to the SEC. Matthew Sigel, head of digital asset research at VanEck, said that SOL has high throughput, low fees, robust security, and strong community cohesion, making it a very attractive fund option.

Three Reasons Why a Solana ETF Won’t Pass Anytime Soon

Although the market needs more traditional financial products to enter the crypto market, Xiao Miao believes that the Solana ETF is less likely to be passed in the short term, mainly based on the following three reasons:

1. Insufficient decentralization

Although Solana is known for its superior transaction speed and low fees, these advantages come at the expense of decentralization. Running Solana nodes usually requires high-performance hardware and data center support, which is costly, so it is nicknamed the "computer room chain". In addition, institutions hold a large amount of Solana, combined with the history of price plunges caused by the FTX crash, which may cause Solana to be considered insufficiently decentralized, thereby increasing its risk of being identified as a security.

SEC Regulatory Issues

Bitcoin and Ethereum have a unique position and strength in the cryptocurrency market that is difficult to replicate. If the SEC approves the Solana ETF, it may trigger a large number of applications from other public chains, leading to the proliferation of cryptocurrency ETFs and posing huge challenges to regulators. Therefore, it may take years of planning and preparation before the SEC and other agencies find an executable solution.

3. Lack of SOL futures ETF

According to the creation history of Bitcoin and Ethereum spot ETFs, the market usually needs to have a futures ETF before applying for a spot ETF. Rob Marrocco, Cboe's vice president for ETF listing, once said that without first establishing a futures market or changing regulatory conditions, it would be impossible for a cryptocurrency ETF other than Bitcoin and Ethereum to appear. Even if the Solana futures ETF is launched, it will need to establish a tracking record through long-term trading and prove to the market that it is liquid and transparent, a process that may take a considerable amount of time.

In summary, the possibility of Solana ETF passing in the short term is low. VanEck’s move is more likely to gain market attention and publicity.

In the future, we will continue to pay attention to this development to see if there will be any new turning points.

As soon as the announcement came out yesterday, the SOL token rose nearly 9%, climbing from a low of 124 to a high of 144. Data shows that SOL briefly touched $150 today before falling back to its current level.

This price surge also boosted the prices of meme coins built on Solana. The main reason seems to be VanEck’s filing for the Solana ETF.

The positive sentiment surrounding Solana has spread to its meme coin market, with several tokens experiencing notable gains.

Book of Meme (BOME) emerged as one of the best performing tokens, with its price surging 15.1% to $0.01044. Another popular Solana meme token, BONK, saw its price increase by 7.8%. One of the biggest gainers in the Solana meme coin ecosystem is Popcat, which has surged 20% in the past 24 hours. While not as dramatic as other meme coins, dogwifhat has also participated in the rally, gaining 3.3% in the past 24 hours.

We have seen similar situations in the past where Solana meme coins have risen following a surge in Solana price. While the filing of the SOL spot ETF is only the first step in a long process, the approval of the Solana ETF could further drive the prices of meme coins in the Solana ecosystem higher.