Asset managers VanEck and 21Shares have officially submitted S-1 filings with the U.S. Securities and Exchange Commission (SEC) for the first Solana Spot ETF in a major development for the cryptocurrency industry.
The move comes as the Bitcoin ETF market has seen significant success since its launch in January, with the Ethereum ETF market set to begin trading next week.
However, Matthew Sigel, head of digital asset research at VanEck, stressed that the final approval and trading probability of the expected Solana ETF Market will depend heavily on the outcome of the upcoming US presidential election.
This is due to notable differences in their approaches to cryptocurrency regulation and the potential change in leadership at the SEC, which plays a central role in the approval process.
Sigel Calls for Fair Approval Process for Solana ETF
In a recent Bloomberg interview interviewSigel highlighted the growing influence of crypto voters in elections and the changing regulatory environment in Washington. He said, “We’re already seeing a change in the regulatory environment at the elected level. Several Democrats are voting for pro-crypto legislation.”
Cryptocurrencies have become a hot topic in the White House race, with the Biden administration taking a different approach. Regulation of digital assets than former President Donald Trump, who has expressed support for the industry.
Sigel also noted that the lack of a regulated futures market for Solana could hamper the ETF’s approval. He attributed this to the influence of SEC Chairman Gary Gensler: “We think this is Gensler Psyop again. He’s created this condition since he took office.”
Sigel expressed confidence that with the regulatory landscape evolving, Solana ETFs could still be approved even if Biden wins the election. He stressed that the outcome also depends on the SEC chairman and urged the SEC to make a fair and timely decision. approval process.
Addressing the regulatory environment, Sigel criticized the current situation, particularly regarding Solana. However, he stressed that if Ethereum-based products were allowed to be traded, it would cement Ethereum’s status as a commodity, and the same principle should apply to Solana.
Numerical analysis of the galaxy
Alex Thorn, Director of Research at Galaxy Digital, analysis On-site deposits of Solana ETPs by VanEck and 21Shares, similar to Sigel’s approach.
Thorn stressed the importance of the recent adoption FIT21 Lawthat clarifies regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC). This legislation could play a crucial role in the future regulation of cryptocurrencies, clarifying whether digital assets should be treated as commodities or securities.
Thorn noted that such clarity could improve the chances of ETP approval for digital currencies beyond Bitcoin and Ether, including Solana.
Overall, the future of Solana ETFs faces regulatory hurdles and uncertainties. VanEck’s history of early filings demonstrates its strategic approach, and they may be banking on the outcome of the US presidential election.
The fate of the Solana ETF will depend on the outcome of the election, potential changes in SEC leadership, and ongoing developments in the regulatory landscape.
At the time of writing, Solana’s native token, SOL, is trading at $141, following the overall market downtrend seen on Wednesday, resulting in a 5% price drop over a 24-hour period.
Featured image of DALL-E, chart from TradingView.com
