July 18, 2024

VanEck Files for First Solana ETF in the US

 VanEck Files for First Solana ETF in the US

VanEck Files for First Solana ETF in the US

VanEck has submitted an application to the SEC to launch the first spot Solana ETF in the United States, aiming to expand its cryptocurrency investment products and capitalize on Solana’s blockchain utility. 

After ETH, BTC, Now SOL ETF

VanEck, a notable pioneer in the cryptocurrency exchange-traded fund (ETF) market, has recently taken a significant step in its crypto ETF journey by filing an application for a Solana ETF with the U.S. Securities and Exchange Commission (SEC). The firm submitted an S-1 registration statement for its “VanEck Solana Trust” on Thursday, aiming to launch the first spot Solana (SOL) ETF in the United States.

A First for Solana ETFs in the US

According to VanEck’s head of digital asset research, Matthew Sigel, the company is breaking new ground as the first in the U.S. to apply for a Solana ETF. This move marks a notable progression in the cryptocurrency investment sector. As per the filing, VanEck emphasized that the Trust and its Sponsor will not engage in staking activities to earn additional SOL or generate other forms of income from the holdings.

Announcement and Rationale

Sigel, head of digital asset research at VanEck, announced the news on June 27 via the X platform. He highlighted that the new fund, named VanEck Solana Trust, aims to leverage the high utility and economic feasibility of the Solana blockchain. 

Sigel remarked, 

“We believe that the native token, SOL, functions similarly to other digital commodities like Bitcoin and Ether. It is used to pay transaction fees and computational services on the blockchain. Like Ether on the Ethereum network, SOL can be traded on digital asset platforms or used in peer-to-peer transactions.”

Investment Product Expansion

This application signifies VanEck’s continued efforts to expand its cryptocurrency investment products. The firm views SOL as a commodity despite the SEC’s ongoing classification of similar assets as securities. The prospectus outlines that the ETF will reflect Solana’s price performance by directly backing the Trust’s shares with SOL tokens. VanEck plans to list the ETF on the Cboe BZX Exchange.

Broader Implications and Market Context

The filing follows the SEC’s recent approval of 19b-4 applications from national exchanges, allowing them to list spot Ethereum ETFs. Although the S-1 statements for these Ethereum ETFs are still pending final approval, expert analysis suggests they could go live soon. This context raises questions about the SEC’s potential stance on the Solana ETF.

Experts argue that denying a similar product for Solana would be challenging, given the existing presence of Bitcoin and Ethereum ETFs. 

In fact, according to a legal expert, if the SEC approves Ethereum ETFs, it would be challenging for the agency to deny approval for Solana ETFs, as they function in essentially the same manner from the SEC’s perspective.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

Amara Khatri