Key Points:
Analysts view VanEck’s move as a strategic gamble linked to the November election. James Seyffart from Bloomberg Intelligence suggests that under the current SEC administration, which historically scrutinizes crypto ETFs without federally regulated futures markets, a spot Solana ETF might face denial. However, Seyffart speculates that a potential shift in the White House and SEC leadership towards crypto-friendly policies could alter this outlook.
According to CoinDesk, under Biden, the SEC has been reluctant to approve crypto-related products, often taking years for those that are approved. A Trump administration would likely replace SEC Chair Gary Gensler and could change the agency’s priorities significantly.
While only Bitcoin ETFs have received US approval so far and Ethereum ETFs are still pending full authorization, Solana, as one of the leading cryptocurrencies, appears a logical progression. Bloomberg’s Eric Balchunas and others argue that a change in US leadership may be necessary for serious consideration of a spot Solana ETF.
The SEC’s classification of SOL as a security in recent actions against major exchanges adds another layer of complexity. This designation, coupled with the absence of a well-established regulated derivatives market like those for Bitcoin and Ethereum, poses challenges for spot Solana ETF approvals.
Despite growing interest from ETF issuers, including VanEck, analysts caution that Solana ETFs may struggle to meet SEC standards. The lack of a futures market for Solana and previous SEC statements regarding SOL’s security status are significant hurdles.
Matthew Sigel, head of research at VanEck, remains optimistic, highlighting Solana’s decentralized network and market demand akin to Ethereum. He believes now is the opportune moment for SOL ETF approval, amidst speculation of an impending Ethereum ETF launch before the US Independence Day holiday on July 4. Balchunas again said that an approval would come as soon as the holiday week.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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