TLDR
VanEck’s head of digital asset research believes approval of a Solana ETF in the USA is inevitable.
Brazil recently approved spot ETFs on Solana, following earlier approvals for Bitcoin and Ethereum.
Solana must meet strict SEC requirements for ETF approval, including regulatory compliance and market demand.
The price of SOL has not significantly reacted to ETF-related news.
Other countries like Canada and Switzerland have already approved Solana-based investment products.
Solana edges closer to potential ETF approval in the United States. This development follows the recent approval of Bitcoin and Ethereum ETFs, sparking interest in altcoin exchange-traded funds.
Matthew Sigel, head of digital asset research at VanEck, recently stated that the approval of a Solana ETF in the USA is “inevitable.” This optimism stems partly from developments in other countries. Brazil, for instance, recently approved spot ETFs on Solana, following earlier approvals for Bitcoin and Ethereum. Sigel described Brazil as a “long-time pioneer in digital assets,” suggesting that the U.S. counterpart should be ready to follow suit.
The path to ETF approval in the United States is not without challenges. The U.S. Securities and Exchange Commission (SEC) has classified Solana as a security, complicating the approval process. This classification differs from Bitcoin and Ethereum, which have successfully obtained ETF approvals.
To secure ETF approval, Solana must meet several stringent requirements set by the SEC. These include demonstrating strong regulatory compliance, particularly in areas such as anti-money laundering (AML) and know-your-customer (KYC) protocols. The cryptocurrency must also prove substantial market demand from both institutional and retail investors, as evidenced by trading volumes and the number of active wallets.
Solana needs to ensure secure and reliable custody solutions, high liquidity to handle large transactions without significant price disruptions, and transparent operations with regular and accurate reporting. These factors are crucial in assessing the asset’s readiness for an ETF product.
The price of SOL, Solana’s native cryptocurrency, has not shown significant reaction to the ETF-related news. While SOL has gained 44% in 2024, this performance is in line with other major cryptocurrencies and appears more influenced by broader market trends than ETF speculation.
Michael Sonnenshein, CEO of Grayscale Investments, noted the growing demand for diversified crypto investment products, highlighting Solana’s potential as a “more cost-effective blockchain than Ethereum.”
While the U.S. market awaits a decision, other countries have moved forward with Solana-based investment products. Canada’s Evolve Funds Group launched the world’s first multi-cryptocurrency ETF, which includes Solana among its holdings. In Europe, Switzerland’s SIX Swiss Exchange approved the trading of Solana-based exchange-traded products (ETPs).
The success of these international products may influence the SEC’s decision-making process. Demonstrating that Solana can operate successfully within regulated environments globally could strengthen its case for U.S. approval.
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