TL;DR
- VanEck has filed an application with the SEC to launch the first exchange-traded fund (ETF) dedicated to Solana (SOL) in the U.S. market.
- Following the announcement, SOL’s price has immediately surged by nearly 8%, reaching $147.69 since the S-1 form was published.
- SOL is considered a digital commodity comparable to Bitcoin and Ethereum due to its essential role in the Solana network, highlighting its unique combination of scalability, speed, and low costs.
VanEck aims to expand its investment options in the crypto market. It has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch an ETF dedicated to Solana (SOL). This marks the first proposal for a SOL ETF registered in the U.S., just six days after a similar application by 3iQ in Canada.
VanEck’s announcement has had an immediate impact on the market, lifting SOL’s price by almost 8% since the S-1 filing became public. Its current trading price is $147.69. According to Matthew Sigel, head of digital assets research at VanEck, SOL is considered a digital commodity, akin to Bitcoin and Ethereum, because of its essential function within the Solana network.
I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US.
Some thoughts on why we believe SOL is a commodity are below.
Why did we file for it?
A competitor to Ethereum, Solana is open-source blockchain software designed to… pic.twitter.com/XwwPy8BXV2— matthew sigel, recovering CFA (@matthew_sigel) June 27, 2024
Sigel argues that SOL, used for transaction fees and computational services on the blockchain, possesses attributes that differentiate it as a competitive alternative to Ethereum, highlighting its unique combination of scalability, speed, and low costs.
Solana: An Alternative to Ethereum
VanEck, known for pioneering crypto ETF filings, was the first to apply for a spot Ether ETF in 2021, a decision that eventually led to their approval. The firm aims to capitalize on unique opportunities within the digital asset market, providing investors with regulated access to high-profile cryptocurrencies.
The VanEck Solana Trust, as the new fund is named, aims to closely track SOL’s price performance, excluding trust operational expenses. If approved, it is expected to be listed on the Cboe BZX Exchange, facilitating trading and access for institutional and retail investors alike.
The application follows the recent approval of Ethereum ETFs, setting a positive precedent for potential approval of similar funds for other major cryptocurrencies. While serious discussions about a SOL ETF may not commence until 2025, the filing is a clear indication of the growing acceptance and legitimacy of cryptocurrencies as investment assets.
