Aug 1, 2024
According to Beincrypto, VanEck’s Head of Digital Assets Research, Mathew Sigel, believes that Solana ETFs (exchange-traded funds) might arrive on the market sooner than expected. This view contrasts with BlackRock’s more cautious stance, with the investment giant feeling it might be too early to introduce such a financial product.
Solana (SOLUSD) continues to be a strong player in the crypto market, having first challenged Ethereum regarding scalability and network fees before entering the conversation around ETFs.
Solana ETFs: A Promising Development According to VanEck
Advocating for Solana ETFs, Sigel current regulatory hurdlespoints to the European market, which already has various ETPs (exchange-traded products), including single coin and basket options. He expressed VanEck's ambition to lead similar innovations in the U.S.
During an appearance on The Wolf of All Streets Podcast, Sigel acknowledged the regulatory hurdles currently in place, largely attributed to SEC Chair Gary Gensler. However, he remains hopeful that the regulatory environment might soon improve, opening up more opportunities for diverse crypto ETFs.
In a recent discussion reported by BeInCrypto, Sigel outlined the process for getting an SOL-based ETF approved, drawing parallels between Solana and Ethereum. He maintains that the establishment of an Ethereum ETF sets a precedent for a potential Solana ETF.
Sigel also reiterated VanEck’s strong commitment to crypto and ETFs, noting that the firm's CEO, Jan Van Eck, stated at the Bitcoin 2024 Conference that 30% of his personal assets are in Bitcoin.
The anticipation of a friendlier regulatory climate is shared by figures like former President Donald Trump, who at the Bitcoin 2024 Conference, pledged to replace Gensler if re-elected, potentially easing regulations. This sentiment is echoed by ETF Store President Nate Geraci, while crypto analyst Miles Deutscher remains more measured, acknowledging the rapid growth in crypto and the possibility of a Solana ETF becoming viable soon.
BlackRock's Skepticism Over Solana ETFs
Despite this optimism, BlackRock is not convinced. Robert Mitchnick, head of digital assets at BlackRock, pointed out the market cap and maturity differences between leading cryptos like Bitcoin and Ethereum and smaller assets like Solana. He noted that BlackRock has no immediate plans for a Solana ETF, emphasizing that Bitcoin and Ethereum dominate the market cap, with Bitcoin holding about 55% and Ethereum around 18%. He suggested that it's premature to consider a Solana ETF due to its relatively smaller market presence.
BlackRock’s cautious approach, as reported by BeInCrypto, focuses on established cryptocurrencies like Bitcoin and Ethereum for their ETFs, citing concerns about the investability of smaller assets like Solana.
Meanwhile, SEC Commissioner Hester Pierce indicated that the SEC needs more convincing before approving a Solana ETF, noting ongoing debates within the commission about what constitutes a security.
As discussions around Solana ETFs continue, major players in the market are positioning themselves for potential rewards. So far, only VanEck and 21Shares have filed to list such an instrument. The Chicago Board Options Exchange (CBOE) has also taken steps by filing form 19b-4s for Solana ETFs, inviting public commentary.
Despite the buzz, recent data from BeInCrypto shows that Solana has dropped by 8%, trading at $168.40 amidst a broader downturn in the crypto markets
