VanEck, a New York investment giant, has made waves in the crypto world by filing to launch an exchange-traded fund (ETF) tracking Solana’s token, SOL. While this marks the first such attempt in the US, experts are skeptical of its immediate success due to regulatory hurdles.
Many analysts believe approval is unlikely under the current administration. The SEC has historically expressed concerns about market manipulation in crypto-based ETFs, and a year ago, even labeled SOL an unregistered security. This classification hinges on the Howey Test, a decades-old legal framework for identifying investment contracts. Crypto advocates argue this test doesn’t apply to decentralized networks like Solana.
Market Surveillance Concerns Add Another Layer
The SEC has also voiced worries about market surveillance standards for spot crypto markets. This was a key factor in the decade-long delay for approving spot Bitcoin ETFs. Experts suggest the lack of a developed futures market for SOL could be another hurdle.
VanEck’s Strategy: Long Game or Publicity Play?
Some analysts view VanEck’s filing as a strategic move to establish itself as a leader in crypto ETFs, similar to BlackRock’s surprise Bitcoin ETF filing last year. VanEck recently waived fees for its Ethereum ETF, further bolstering this theory.
While legal roadblocks seem likely, many legal experts remain optimistic about eventual ETF approvals, potentially with a change in administration. Crypto has become a significant election issue, with some predicting a pro-crypto stance could benefit former President Trump.
Related: VanEck Files for First-Ever US Solana ETF, Reigniting Commodity vs. Security Debate
Is This Bad News for Biden?
VanEck’s filing could negatively impact President Biden’s image in the crypto community, which perceives his administration as anti-crypto. However, some believe the SEC will ultimately approve SOL ETFs due to their similarities with Ethereum, which is already on track for ETF approval.
The Takeaway: A Long Road Ahead for Solana ETFs
VanEck’s filing marks a significant step for Solana ETFs, but the path to approval is likely to be long and winding. Regulatory hurdles and political winds will play a major role in determining the ultimate outcome.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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