Amid the ongoing mass adoption of digital assets led by institutional investors, VanEck, one of the issuers of spot Bitcoin ETFs, has filed the first Solana (SOL) exchange-traded fund (ETF) in the United States.
According to Matthew Sigel, the head of digital assets research at VanEck US, the firm filed a Solana ETF with the US Securities and Exchange Commission (SEC) on June 27, Thursday.
Breaking : #VanEck Files for #Solana Trust pic.twitter.com/pCPyjQeH8P
— Coinpedia (@CoinpediaNews) June 27, 2024
Why Solana ETF Now?
Following the recent approval of spot Ethereum and Bitcoin ETFs in the United States, market pundits believe that it is a matter of time before the SEC approves similar products from the altcoin industry. Moreover, there is a genuine high demand for altcoins by institutional investors seeking to diversify their crypto portfolio.
I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US.
— matthew sigel, recovering CFA (@matthew_sigel) June 27, 2024
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
According to Sigel, the Solana network has grown into a popular web3 ecosystem with nearly $4 billion in total value locked (TVL). With nearly $4 billion in stablecoins market cap, the Solana network has attracted more web3 developers as shown by its vibrant meme coins.
The recent announcement by the US SEC that it will no longer investigate Ethereum for securities law violations has increased the altcoins’ credibility.
Market Implications
VanEck filing for a Solana ETF is further proof that altcoins are coming to Wall Street.
— Pomp ? (@APompliano) June 27, 2024
Crypto is helping bring volatility and risk back to public markets.
Following the announcement, the SOL price against the US dollar surged more than 9 percent to trade around $149 at the time of this writing. While the final ruling on the Solana ETF will take place in 2025, with a possibility of a new U.S. government, it is now evident that Wall Street is ready for the altcoin industry.
