Asset management company VanEck announced its filing for the first Solana (SOL) exchange-traded fund (ETF) in the United States.
The VanEck Solana Trust is planned to be listed on the Cboe BZX Exchange, with its holdings primarily consisting of SOL tokens. The valuation of its Shares will be calculated daily using the reported MarketVectorTM Solana Benchmark Rate, as outlined in the firm’s S-1 registration statement.
The move comes following recent approvals by the United States Securities and Exchange Commission (SEC) for spot ETFs on Bitcoin and Ethereum. The agency recently greenlighted 19b-4 forms for spot Ethereum ETFs, and the next step involves granting permission on registration statements before these ETFs can commence trading on local exchanges.
ETF analyst at Bloomberg, James Seyffart highlighted that under a new administration in the White House and potential changes at the SEC, there might be the potential launch of relevant applications around 2025, though uncertainties remain regarding its realization.
First SOL ETF filing in the U.S. Will be interesting to see if other issuers immediately follow suit. Early thoughts are that this only has a shot to launch sometime in 2025 if we have a new admin in the White House and SEC. Even then not guaranteed. https://t.co/I1yoWNpdd4
— James Seyffart (@JSeyff) June 27, 2024
VanEck Identifies Solana As Compelling ETF Candidate, Views SOL As Commodity
Solana operates on open-source software tailored to support diverse applications such as payments, trading, gaming, and social interactions. Its distinctive features include scalability, high speed, and low transaction costs, potentially providing an enhanced user experience across various application scenarios.
According to a statement on social media platform X from Matthew Sigel, Head of Digital Assets Research at VanEck, Solana distinguishes itself by enabling thousands of transactions per second at minimal fees. It utilizes an advanced security model that merges proof-of-history and proof-of-stake mechanisms. These features position Solana as a powerful and user-friendly blockchain software. Its high throughput, low transaction fees, security protocols, and community make it an appealing candidate for an ETF, providing investors exposure to a versatile and new open-source ecosystem.
He also highlighted that VanEck views Solana’s native token SOL as akin to other digital commodities like Bitcoin and Ethereum. SOL serves as payment for transaction fees and computational services on the blockchain. Furthermore, SOL is tradable on digital asset platforms and can be used for peer-to-peer transactions. Meanwhile, its decentralized structure, high utility, and economic viability align with the attributes of established digital commodities. This strengthens the company’s belief that SOL holds potential as a valuable commodity, offering opportunities for investors, developers, and entrepreneurs seeking alternatives to duopoly application stores.
The debate revolving around whether specific cryptocurrencies fall under the jurisdiction of the SEC as securities or under the Commodity Futures Trading Commission as commodities is currently ongoing.
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