Solana (SOL) enthusiasts have reason to cheer. Fund manager VanEck has filed for the first-ever Solana exchange-traded fund (ETF) in the United States, marking another significant step for the rapidly growing blockchain platform.
“I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US,” announced Matthew Sigel, head of digital assets research at VanEck, in a post on [platform] on Thursday.
This news follows the SEC’s recent approval of spot ETFs for both Bitcoin and Ethereum. While spot Ethereum ETFs received the green light for their 19b-4 forms last month, registration statements still need approval before trading commences. However, some analysts predict this could happen as soon as next week.
VanEck’s Solana ETF: How Will It Work?
The VanEck Solana Trust, as planned, would list on the Cboe BZX Exchange and hold SOL directly. The fund would value its shares daily based on the MarketVectorTM Solana Benchmark Rate, according to VanEck’s S-1 registration statement.
Also Read: Solana Squeeze: Liquidations Hit $27 Million as SOL Price Tanks 19% (Can Bulls Bounce Back?)
Is SOL a Commodity or a Security? The Debate Continues
An interesting wrinkle in this development is the ongoing debate surrounding the classification of SOL. VanEck asserts that SOL functions similarly to Bitcoin and Ether, classifying it as a commodity. However, the SEC labelled SOL as a security when filing charges against crypto exchange Binance last year.
“SOL’s decentralized nature, high utility, and economic feasibility align with the characteristics of other established digital commodities,” Sigel argued on Thursday. He believes SOL’s potential use cases for investors, developers, and entrepreneurs make it a valuable commodity, offering an alternative to dominant app stores.
The SEC’s stance on cryptocurrency classification remains a complex issue. VanEck’s filing reignites the debate, and it will be interesting to see how the regulatory body responds to this first-mover attempt in the US Solana ETF market.
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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