The cryptocurrency market has taken another step towards regulated and large investments in cryptocurrencies with the first-ever Solana ETF offering in the US by asset manager and Bitcoin ETF issuer VanEck.
Following the approval of Spot Bitcoin ETFs in January and the expected launch of Ethereum ETFs in July, this development marks another milestone in the expansion. cryptocurrency investment options for retail and institutional investors.
The news of the filing of VanEck’s Solana ETF with the US Securities and Exchange Commission (SEC) caused a surge in the traditional SOL token, with its value rising almost 8% when it was disclosed by Matthew Sigel, VanEck’s head of digital asset research.
VanEck’s Confidence in Filling Its Solana ETF
In a social media postsSigel highlighted VanEck’s reasons behind the inclusion, emphasizing Solana’s potential as a competitor to Ethereum and its ability to support a variety of applications such as payments, trading, gaming, and social networking.
Describing Solana as open source blockchain software designed for scalability, speed, and low cost, Sigel explained that the platform offers an improved user experience across multiple use cases.
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Sigel also touted Solana’s ability to process thousands of jobs per second at low cost and efficiency secure way based on historical evidence and evidence of stake as reasons for the bold move to file the Solana ETF with the SEC on Thursday.
VanEck believes Solana’s high performance, low fees, strong security, and strong community make it an attractive choice for an ETF, providing investors with exposure to the new open source ecosystem.
In addition, Sigel believes that the original SOL token serves as a payment method for transactions and computing services on the Solana blockchain, similar to Bitcoin and Ethereum in their networks, suggesting that it should be. classified as property instead of a crypto security, thus we have a strong argument for SEC approval of the Solana ETF.
Analysts Expect Bullish Hearing
While the news of the Solana ETF’s inclusion has generated excitement, some experts are expressing caution. For example, Bloomberg ETF expert James Seyffart suggests that the Solana ETF may only be launched in 2025 under new administrations in the White House and the SEC as the expected election date in the US approaches, with crypto legislation as one of the main topics in the race for the White House.
In addition, market analyst Adam Cochran highlights pending SEC claims and Chicago Mercantile Exchange (CME) futures volume requirements in the US as potential challenges to ETF approval. Cochran also said:
If this is approved though, the floodgates open, we get ETFs for everything and it will be a cheap market for every single coin.
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Finally, the inclusion of Solana ETF by VanEck sets an important precedent in the cryptocurrency market. If successful, it could pave the way extensive discovery and the recognition of Solana as a valuable digital asset, offering investors, developers, and entrepreneurs additional opportunities.
At the time of writing, SOL was trading at $147 and even reached the resistance line of $150, which could be the closest obstacle to the token in its goals to recover the previously lost levels.
Featured image from DALL-E, chart from TradingView.com
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