VanEck’s Solana ETF Filing: SOL Classified as Commodity Investment

VanEck’s Solana ETF Filing, Designates SOL as Commodity

Crypto News- VanEck filed an application to launch a spot Solana exchange-traded fund (ETF) on Thursday, becoming the first asset manager to do so.

The ETF application asserts that Solana’s SOL token should be treated as a commodity, contrary to the Securities and Exchange Commission’s (SEC) previous stance of categorizing it as a security.

VanEck’s Perspective on SOL as a Commodity

We believe the native token, SOL, functions similarly to other digital commodities such as Bitcoin and Ether,

Matthew Sigel

Sigel emphasized that the diverse range of applications and services supported by the Solana ecosystem highlights SOL’s utility and value as a digital commodity.

Details of the VanEck Solana Trust

VanEck’s S-1 form names the proposed ETF the “VanEck Solana Trust” and indicates that the firm will custody the SOL held in the ETF.

This application comes as the crypto community anticipates the SEC’s approval of several spot Ethereum ETFs, a decision expected to replicate the success seen with spot Bitcoin ETFs launched in January.

Market Implications and Regulatory Climate

To some, VanEck’s application suggests a bet on a perceived shift in sentiment in Washington, D.C., with both President Joe Biden and former President Donald Trump appearing to soften their stances on cryptocurrency lately.

Challenges Ahead: No Futures Market for Solana

VanEck’s application to launch a Solana spot ETF is groundbreaking. Historically, the SEC has argued that spot crypto ETFs cannot be listed on U.S. exchanges without a highly correlated, regulated futures market for the corresponding asset.

SEC Chair Gary Gensler first indicated he would approve spot Bitcoin ETFs on August 3, 2021, when Bitcoin futures outstanding interest on the Chicago Mercantile Exchange stood at $1.3 billion. When the SEC signaled approval for an Ethereum ETF in May, Ether futures outstanding interest was around $700 million.

However, Solana does not have a regulated U.S.-based futures market. If VanEck succeeds, Solana’s SOL will become the third crypto asset to secure its own spot ETF, following Bitcoin and Ether.

Regulatory Shifts and Political Climate

VanEck’s confidence in filing for a Solana spot ETF may indicate a softening stance among regulators ahead of the U.S. election.

After months of silence, the SEC appeared ready to deny eight spot Ethereum ETF applications ahead of the May 23 deadline. But just days before, the agency reversed its approach, engaging actively with prospective ETF issuers and signaling to exchanges that it was leaning toward approving the products.

Analysts attribute this shift to changing attitudes within Democratic Party leadership as cryptocurrency becomes a more politicized issue leading up to the November election. Presumptive Republican presidential candidate Trump recently endorsed the crypto industry, further indicating a potential regulatory shift.

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