SOL Price Soars As First-Ever Solana ETF Filing Surfaces In The US
June 27 2024 - 5:00PM
NEWSBTC
The cryptocurrency market has taken another step towards regulated
and mass investment in cryptocurrencies with the first-ever
application for a Solana ETF in the US by asset manager and Bitcoin
ETF issuer VanEck. Following the approval of spot Bitcoin
ETFs in January and the anticipated launch of Ethereum ETFs in
July, this development marks another milestone in expanding
cryptocurrency investment options for retail and institutional
investors. The news of VanEck’s Solana ETF filing with the US
Securities and Exchange Commission (SEC) caused a surge in the
native token SOL, with its price rising nearly 8% upon disclosure
by Matthew Sigel, VanEck’s head of digital asset research.
VanEck’s Confidence In Its Solana ETF Filing In a social media
post, Sigel highlighted VanEck’s reasons behind the filing,
emphasizing Solana’s potential as a competitor to Ethereum and its
ability to support various applications such as payments, trading,
gaming, and social interactions. Describing Solana as open-source
blockchain software designed for scalability, speed, and low costs,
Sigel explained that the platform offers an enhanced user
experience across multiple use cases. Related Reading: Fears
Of Bitcoin Sales By US And German Govts Are FUD, Even Bullish:
Experts Sigel also cited Solana’s ability to process thousands of
transactions per second at low fees and use a secure mechanism
based on proof-of-history and proof-of-stake as reasons for the
bold move to file the Solana ETF with the SEC on Thursday. VanEck
believes that Solana’s high throughput, low fees, strong security,
and vibrant community make it an attractive option for an ETF,
providing investors with exposure to an innovative open-source
ecosystem. In addition, Sigel believes that the native token
SOL serves as a means of payment for transaction fees and computing
services on the Solana blockchain, similar to Bitcoin and Ethereum
in their respective networks, suggesting that it should be
classified as a commodity rather than a crypto security, thus
having a strong argument for SEC approval of the Solana ETF.
Analysts Anticipate Bullish Sentiment While the news of a Solana
ETF filing has generated excitement, some experts express
caution. For instance, Bloomberg ETF expert James Seyffart
suggests that the Solana ETF might only launch in 2025 under a new
administration in the White House and SEC as the anticipated
election date in the US nears, with crypto regulation as one of the
main topics in the race for the White House. In addition,
market analyst Adam Cochran highlights unresolved SEC claims and
Chicago Mercantile Exchange (CME) futures volume requirements in
the US as potential challenges to ETF approval. Cochran further
said: If this does get approved though, floodgates opened, we’re
getting ETFs for everything and it would be a wildly bullish market
for every single coin. Related Reading: Why Is The Bitcoin Price
Down Today? Ultimately, the filing of a Solana ETF by VanEck sets
an important precedent for the cryptocurrency market. If
successful, it could pave the way for broader adoption and
recognition of Solana as a valuable digital commodity, offering
investors, builders, and entrepreneurs alternative opportunities.
At the time of writing, SOL was trading at $147 and even reached
the $150 resistance line, which would be a near-term obstacle for
the token in its intentions to regain previously lost levels.
Featured image from DALL-E, chart from TradingView.com
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