Analyzing the Impact of Possible Solana ETF Approval: Insights from VanEck Researcher Matthew Siegel

Reasons Why Solana ETF Approval is on the Horizon: Insights by VanEck Researcher

Mathew Siegel, head of research at VanEck, predicted that the market would witness the approval of a Solana ETF following the historic approvals of Bitcoin and Ethereum spot ETFs. The asset management company has applied for the first Solana ETF in the United States, paving the way for the possibility of this financial product to provide institutional investors with exposure to Solana. Potentially introducing the first Solana exchange-traded product (ETP) to North America, the filing on Thursday also coincides with 31Q’s filing six days prior to offer the same financial instrument in Canada.

According to Siegel, Solana would benefit from using the same wording as the Ethereum ETF 19b4 forms, which referred to Ethereum as a commodity due to its decentralized nature. He believes that Solana might be approved more easily if exchanges are ready to sign the same surveillance-sharing agreements that they did for the spot ETFs on Ethereum and Bitcoin.

VanEck Also Filed an Application for Ether ETFs

This is VanEck‘s second aggressive attempt to take advantage of its first-mover advantage in the Solana ETF filing. It also filed an Ethereum spot ETF application with the SEC for the first time in 2021. However, the financial regulator did not become available to interact with potential issuers for nearly three years.

VanEck, BlackRock, Fidelity, and five additional companies waiting for a potential ETH ETF launch submitted a follow-up ETH ETF proposal in September 2023. Although VanEck has already waived fees until 2025 pre-approval, it is generally anticipated that the products will go live in early July.

Solana’s Superiority in ETF Approval Odds Compared to Other Altcoins

Solana outperforms its competitors in both categories, according to GSR. With the release of the Firedancer client, the blockchain platform demonstrates a step in the right direction toward decentralization. Its positive decentralization and demand ratings also demonstrate that it captures a sizable portion of market demand.

There is a strong market demand for Solana. Strong market performance and large trading volumes, which are markers of investor confidence and the asset’s potential for long-term demand, have been regularly displayed by the asset. Because of this, Solana is a great option for an ETF, especially if asset selection heavily depends on anticipated inflows.

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